Can I Convert an Outstanding Amount of Credit Card into EMI?

Many banks and credit card companies provide the option to convert outstanding credit card balances into Equated Monthly Installments (EMI). This process enables you to pay off your outstanding credit card balance in smaller, more manageable monthly payments over a specified period. Here’s a detailed guide on how to do it effectively.

1. Check Eligibility

First, determine if you qualify for EMI conversion. Contact your bank or credit card issuer to verify if they offer this service and if your outstanding balance fits the criteria. Some banks may require a minimum balance or specific conditions to be met.

2. Understand the Terms

Before you proceed with the EMI conversion, inquire about the interest rates, processing fees, and tenure options associated with the EMI plan. Understanding these terms will help you make an informed decision about the total cost and whether this method is more cost-effective than paying off the balance directly.

3. The Application Process

If you are eligible, you can apply for the conversion either online through your bank’s website or app, or you may visit a branch or call customer service. For online applications, you might need your login credentials.

Online Application Process

Login to your bank or credit card issuer’s online portal. Navigate to the EMI conversion feature and select the transactions you want to convert. Follow the prompts to complete the application. Confirm the details and submit the application.

Branch Visit or Caller Support

Visit your local branch or contact customer support. Request to convert your outstanding balance to EMI. Confirm the details with the representative and proceed with the application.

4. Confirmation

Once your application is approved, you will receive a confirmation detailing the EMI amount, tenure, and any other terms. Make sure to review these details carefully to ensure accuracy.

5. Repayment

Ensure you make timely payments each month to avoid penalties or additional interest. Failure to do so can lead to late fees and negatively impact your credit score.

Key Considerations for Credit Card EMI Conversion

It’s important to read the fine print and understand the total cost of converting your credit card balance to EMI. This could be more expensive than paying off the balance directly, especially if you have a high-interest rate. Be aware of the processing fees, interest rates, and any additional charges that may apply.

Example Scenario

For instance, when a transaction is above Rs.2,500/-, it appears underlined on your credit card statement. You can convert these transactions into EMIs within 20 days of the transaction date. If you have the bank’s app, you can specify the number of EMI installments for the transactions. Alternatively, you can call the customer care and request the conversion.

For more specialized credit card types, such as IndusInd credit cards, the process is similar. You can convert purchase outstanding of 2,000 or more into EMIs for tenures of 6, 12, 18, and 24 months. However, note that there are specific terms and conditions associated with EMI conversion, including processing fees, GST on interest, and pre-closure charges.

Conclusion

Converting your credit card outstanding to EMI can provide a more manageable payment plan. By understanding the eligibility, terms, and application process, you can make informed decisions and choose the best option for your financial needs.