Many banking and financial organizations offer you the convenience of converting your purchases into smaller monthly repayments, also known as Equated Monthly Installments or EMIs. Such a feature gives you the option of converting your high-value credit card purchases into manageable bits so that you can plan your finances better without any additional strain in any single month.
For example, you may have to fly home urgently to tend to an ailing member, but the airfare could be skyrocketing. In such a case, you can always pay for your travel using your credit card and then convert the purchase into EMIs to repay the amount in smaller chunks every month.
Here are some advantages of converting your credit card payments into EMIs:
- It becomes easier to meet emergencies by dividing larger expenses into smaller, easily payable amounts.
- Credit card EMIs can be fixed online without jumping through unnecessary hoops for taking out a personal loan, which may also attract a higher interest rate.
- You don’t need any additional documentation to avail a credit card EMI facility on eligible purchases.
- EMIs help you maintain a cash reserve by allowing you to pay off your purchases over several months instead of taking out a huge amount from your savings, all at once.
- Some retailers also offer no-cost EMIs on HDFC Credit Cards, especially during the festive season, saving you a substantial amount of money.
How to Convert Credit Card Payment to EMI in HDFC?
HDFC Bank, one of India’s leading financial institutes, offers its customers a broad range of credit cards to match their personal and financial needs. It also allows its customers to convert their big-ticket purchases into EMIs.
If you are an HDFC Credit Card customer, you can avail of this ‘Smart EMI’ facility using net banking or directly with select merchants. We show you how to convert HDFC credit card payments to EMI below.
How Does the Smart EMI Facility Work?
HDFC’s Smart EMI facility enables you to breakdown big-ticket purchases into smaller chunks, spread out over a tenure of 6 to 24 months. The facility is offered on the majority of HDFC Credit Cards through the Smart EMI platform.
The Smart EMI option is available across a broad range of products, including:
It is also possible to convert your outstanding Credit Card balance into EMI through Smart EMI. Still, you’ll have to pay a processing fee of 1 percent of the loan amount or a minimum of INR 350, exclusive of any GST payment.
In case you are purchasing gold or making any jewelry linked transactions, it is better to discuss EMI options with the merchant directly, as the Smart EMI facility is not available on such transactions due to the existing policy regulations.
How to Avail HDFC Credit Card Smart EMI Facility?
You can avail of the HDFC Credit Card Smart EMI facility online to instantly convert your purchases into monthly installments. However, it isn’t possible to convert transactions older than 60 days into EMI. To convert your purchases into EMI, you can either use net banking or phone banking.
The interest rate on your HDFC Credit Card Smart EMI varies, depending on the type of transaction and duration of EMIs. Typically, you can expect a 20% interest rate per annum for a tenure of 6 to 24 months.
Smart EMI Using Net Banking
With your net banking account, you can conveniently convert your HDFC credit card payments into EMI online in a few simple steps:
- Log-in to the HDFC net banking portal and select the ‘Cards’ option.
- Now, hover to the ‘Transact’ option and click on ‘Smart EMI’.
- At this stage, select the credit card number on which you wish to avail of the EMI facility.
- Tap ‘Debit’ in the type of transaction and then click on ‘View’.
- Now, your screen will show you a summary of all your unbilled transactions.
- You will also see a list of the transactions that are done with the credit card and are eligible for the EMI facility.
- Go through this list and click on the checkbox next to the transaction you wish to convert into Smart EMI.
- Tap ‘Confirm’.
- Next, you must select a tenure and the associated rate of interest.
- Here, you can see the EMI amount.
- If the amount is comfortable for you, click on ‘Continue’ to finish the process.
If you prefer not to use net banking, consider using phone banking to get in touch with the HDFC credit card customer care center to convert your amount into EMIs. A customer care representative will guide you and inform you about the essential details like the rate of interest, tenure, eligible amount, etc.
Once you finalize your instructions and the application is successful, you will receive notifications on your registered mobile number and email id. Your EMIs will start from the immediate billing cycle.
Plan Your Purchases With the HDFC Credit Card EMI Calculator
If you are thinking of making a big-ticket purchase soon, you can always plan your finances better by using the HDFC Credit Card EMI Calculator. Once you visit the EMI calculator page, you can get an idea of the size of the monthly repayments you’d be required to make.
HDFC Credit Card Loan Protection Cover
HDFC goes a step beyond to ensure its customers’ convenience by offering a loan protection cover on your Smart EMI loan. Under this scheme, your loan is secured against the failure to pay, owing to unforeseen accidental death. Any sum insured up to a maximum value of INR 10 lakhs for a tenure of up to 60 months is secured under this feature.
To avail of this feature, the next of kin must inform HDFC of the demise, following which a claim can be raised with the insurance company for balance settlement.
The Bottom Line
Smart EMI can help you purchase expensive items and meet emergency requirements without straining your finances. However, it is essential to pay off your EMIs every month without default, or you may be penalized with a high credit card interest rate.
Missed EMIs also reduce your credit score, making it difficult for you to access credit at competitive prices in the future. Therefore, it is advisable to plan your purchases in advance so that you can use the EMI feature to your advantage without hitting your credit score.