In the realm of consumer finance, the option to convert purchases into Equated Monthly Installments (EMIs) provides a convenient method for managing expenses. However, circumstances may arise where canceling an EMI becomes necessary. Understanding the cancellation processes offered by various banks is crucial. In this article, we delve into the no-cost EMI cancellation procedures for prominent banks, including ICICI, Axis, BoB, SBI, HDFC, Kotak, etc.
Before we jump into explaining how to cancel No Cost EMI with major banks, let’s first understand what No Cost EMI means.
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No Cost EMI Meaning
No Cost EMI, or No-Cost Equated Monthly Installment, is a financing option offered by financial institutions and retailers that allows consumers to purchase goods and services on credit without incurring any additional interest charges. In a No Cost EMI scheme, the total cost of the product is divided into equal monthly installments, and the customer is not required to pay any interest on the borrowed amount.
While the term “No Cost” might suggest that the purchase is entirely free, it actually implies that there is no extra interest cost associated with the EMI payments. The customer pays only the actual price of the product, spread over the chosen tenure. This financing option is often popular among consumers as it enables them to make high-value purchases without facing the burden of hefty interest payments.
No Cost EMI is typically offered on credit cards or through partnerships between retailers and financial institutions. The duration of the EMI plan and the availability of No Cost EMI options depend on the terms and conditions set by the specific bank or retailer. It provides consumers with a convenient and budget-friendly way to afford expensive items by spreading the cost over several months without incurring interest charges.
No Cost EMI Cancellation ICICI Bank
After EMI conversion, promptly contact customer care for immediate cancellation.
Cancellation must be requested within 15 days.
No charges are levied, and processing fees are reversed.
No Cost EMI Cancellation Axis Bank
Similar to ICICI, approach customer care for EMI cancellation within 30 days.
No charges are applied, and processing fees are reversed.
Bank of Baroda (BoB)
Post EMI conversion, send an email to [email protected] for cancellation.
Charges of ₹199 + ₹35 are applicable.
Tip: Request cancellation as soon as the transaction is converted to EMI to avoid daily interest charges.
State Bank of India (SBI)
Contact customer care to request EMI cancellation.
Charges vary from ₹0 to ₹199 for processing fees, along with GST and 3.54% of the outstanding amount.
Trick: Ensure your card’s outstanding balance is zero after the transaction and before EMI conversion to prevent automatic conversion.
Log in to MyCards and initiate the cancellation request.
Charges amount to only ₹35, with the processing fee of ₹199 being reversed.
Avoid initiating EMI transactions on HDFC credit cards if your billing date is within 7 days to ensure processing fee reversal.
HDFC allows flexibility in paying outstanding amounts after EMI cancellation.
Kotak Mahindra Bank
Post EMI conversion, settle the principal amount on the card before calling customer care for cancellation.
All charges are reversed except for the GST component.
Tip: Opt for the highest EMI duration to minimize the GST component.
Understanding the no-cost EMI cancellation processes provided by these leading banks empowers consumers to make informed decisions and manage their finances efficiently. It is essential to be proactive in initiating cancellation requests within the stipulated timelines to avoid any charges and ensure a hassle-free experience.