BOB Credit Card EMI

Bank of Baroda credit card EMI facility has its share of benefits and drawbacks. These are:

Benefits of Bank of Baroda Credit Card EMI Conversion

Deferred Payment – Cardholders who are facing problems paying off their purchases in full can convert such purchases into EMI and pay it off over months or years.

Low Up-front Financial Strain – Since EMI payments are spread over a period of months. Therefore, users don’t have to bear the full financial strain at the time of purchase. This facility can be used by anyone who wants to make a big-ticket purchase without having to take out a personal loan.

No-cost EMI – Bank of Baroda has tied up with various merchants to offer users zero cost EMI. Here, the users aren’t charged a processing fee or interest rate. They get the benefit of EMI conversion without having to face any related drawbacks.

Drawbacks of Bank of Baroda Credit Card EMI Conversion

Interest – Bank of Baroda doesn’t provide the EMI conversion facility free of cost. Users will have to bear a processing fee and interest. Bank of Baroda credit card EMI interest rate is 18% p.a. (post-purchase) or 13% p.a. (Merchant EMI). The user might end up paying a lot of interest, especially if they make a big-ticket purchase and choose a longer tenure option.

Blocked Credit Limit – The purchased amount remains blocked against the cardholder’s credit limit. Users can unlock the limit on making EMI payments.

Increased Credit Utilization – Since the cardholder has to use the remaining credit limit, new purchases will use the remaining credit limit. This will result in increased Credit Utilisation Ratio, which may lower their credit score.

Before you apply for Bank of Baroda credit card EMI conversion read the following section.

Bank of Baroda Easy EMI – Bank of Baroda Easy EMI offers users three options when it comes to EMI conversion. These are Post Purchase EMI, Instant EMI and No Extra Cost EMI.

Do note that in case of Post Purchase EMI, purchases over Rs. 2,500 only are eligible and must be converted before the payment due date.

Tenure – It should be noted that longer tenures charge low-interest rates on EMIs. Still, cardholders should avoid applying for this option as they’ll end up paying more interest. This may outweigh the benefit provided by low payable EMI amount. The following illustration will make things clearer.

Assumptions made: Interest on 3 months Tenure: 25% p.a. Interest on 12 months Tenure: 15% p.a. Purchased Amount: Rs. 10,000

Now, the payable interest amounts for different tenures are:

Tenure	Payable Interest Amount
3 Months	Rs. 616.44
12 Months	Rs. 1,500

Credit Card – All credit cards don’t charge the same rate of interest on EMIs. This is true for cards from the same bank as well. Thus, users with multiple cards should compare the interest rates offered to them before applying.

Lost Benefits – Many times EMI conversions result in the removal of reward points or discounts offered. If the savings offered are significant then the user should reconsider.

Timely Payments – Customers should ensure whether they are capable of making timely payments or not. Otherwise, the bill might get out of control and outweigh the EMI benefits. The reasons are:

• Lost Interest-Free Period – EMI conversions do not remove interest-free period. However, missed payments will remove interest-free periods. And new purchases will incur credit card interest rate
• Credit Card Interest Rate – Bank of Baroda credit card interest rate, 39% p.a., comes into effect when the balance is not paid in full by the due date. This can lead to a significant amount of interest accrual
• Credit Score – The bank will report payment defaults to the credit bureau. The bureau will, in turn, reduce the customer’s credit score

Category	Amount
Interest Rate (Post Purchase)	18% p.a.
Interest Rate (Merchant)	13% p.a.
Processing Fee	2%/Min. Rs. 100
GST	18% on the fees & interest charged
Foreclosure charges	3% of the unpaid principal amount

There are two methods via which one can apply for Bank of Baroda credit card EMI. These are:

Merchant EMI Conversion

In this scenario, customers have the chance to convert their purchases into EMI at the time of payment. Simply ask the cashier, at an eligible merchant store, to convert the purchase into EMI.

For online purchases select the Pay via EMI option at the time of payment. If customer is eligible for No-cost EMI option then choose that option.

Post Purchase EMI Conversion

Customers can log in to their net banking accounts after purchase to convert it into EMI.

Simply, send an email to crm@bobfinancial.com, mentioning the details of the eligible transaction that needs to be converted to EMIs. Share the choice of tenure, 6/12 months.

One can check their unbilled transaction details by logging in to their Bank of Baroda Credit Card account.

How does No Extra Cost EMI work on Bank of Baroda credit card?
No Extra Cost EMIs charge zero or low interest occasionally. They also don’t charge processing fee. This option is given on select products by the merchant alone. Do note that in case of 0% interest option the bank will charge its prevailing interest rate. However, that amount will be given as an upfront discount at the time of payment.

How long does it take to process EMI conversion request?
EMI conversion request does not take much time. Customers will be notified once the amount has been converted into EMI.

Is partial closure or partial pre-payment allowed on this loan?
No, Partial pre-payment or partial closure isn’t permitted on this loan.

What is the tenure options provided on EMI conversions?
You may avail the following tenure options on EMI conversions:

No-cost EMI Tenures	Normal EMI Tenures
3, 6, 9, 12 Months	6 to 12 Months