Axis Bank Credit Card EMI

Axis Bank credit card EMI facility has its pros and cons. These are:

Benefits of Axis Bank Credit Card EMI Conversion

Deferred Payment – At times, one might find it difficult to pay off their credit card bill in full. They might even want to make an expensive purchase. In these instances they can convert their purchases/bill into EMI and pay it off gradually over the course of a few months.

Low Up-front Financial Strain – Since customers pay off the amount over an extended period, they do not bear the full burden of the transaction at once. This is especially beneficial for salaried individuals who might want to purchase an item without straining their monthly household budget.

No-cost EMI – This is perhaps the best option that one can choose when applying for EMI conversion. Here the customer isn’t charged an interest rate or processing fee. This means one gets all the benefits associated with EMI conversion without suffering any of the drawbacks.

Alternatively, one can apply for Axis Bank debit card EMI conversion facility. This facility is for those customers who do not have a credit card but have an Axis Bank debit card and is offered by online shopping portals like Flipkart and Amazon. Eligibility may vary from one user to another.

Drawbacks of Axis Bank Credit Card EMI Conversion

Interest Accrual – The EMI conversion facility is not free. Cardholders are charged interest. The Axis Bank credit card EMI interest rate can be around 1.5% (Monthly Reducing Balance for post-purchase EMIs) or 14% p.a.(Merchant EMI). If one is not careful then the payable interest can turn into a large amount.

Blocked Credit Limit – When customers use the EMI facility then the amount is blocked against the credit limit. The limit is released when the customer pays off the EMIs. The unlocked limit is equal to the EMI amount paid every month.

Increased Credit Utilization – Since a certain part of the credit limit is blocked the available credit limit is reduced. Thus, customers who continue using their credit card in regular fashion will use more of their credit limit. This will increase their Credit Utilisation Ratio which, in turn, would reduce their credit score.

Credit Utilisation Ratio (CUR) is the ratio between the credit limit and its utilisation.

Customers may try an alternative to EMI conversion- Axis Bank Credit Card Loan. This facility allows users to avail loan against the credit limit of their cards. More details on Axis Bank credit card loan can be found here.

Suggested Read: Does It Make Sense To Convert Your Credit Card Dues Into EMIs?

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

Tenure – Banks generally offer a low-interest rate on EMIs with long tenures. This makes them look like a good option especially when one looks at shorter tenure options that charge a higher rate of interest. However, this is not the case. The cardholder will end up paying more interest if they choose the longer tenure option with a lower interest rate. 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 interest amounts for different tenures are:

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

Clearly choosing the shorter tenure is the right way to go if the customer does not want to pay a lot of interest.

Important Point to Remember: Considering individual cases, shorter tenure might not always be the best option. This is because shorter tenures come with high monthly payments. This might strain the budget of those on a fixed income.

Credit Card – All credit cards don’t charge the same interest rate on EMI conversion. Sometimes, even credit cards from the same bank don’t charge the same interest rate. Thus, customers with multiple cards must compare interest rates before applying.

Lost Benefits – An important consideration that one must remember is that sometimes the customer might not earn reward points or avail discounts on Merchant EMI conversions. If the benefits offered are significant then it is best advised that customers save for the purchase.

Timely Payments – Customers must ensure that they are capable of making timely payments every month. Otherwise, the credit card bill will run out of their hands. The reasons for that are:

• Lost Interest-free Period – The interest-free period offered during EMI payment period is lost if the customer misses a payment. And all new purchases will incur credit card interest rate
• Credit Card Interest Rate – Axis Bank credit card interest rate will come into effect when the outstanding is not cleared by the due date. It is about 42% p.a. This might lead to the customer accruing insurmountable interest
• Credit Score – Missed payments are reported to the credit bureau. This would lower the customer’s credit score.

Suggested Read: Axis Bank Credit Card EMI Calculator

Category	Amount
Interest Rate (Post Purchase)	1.5% interest (Monthly Reducing Balance)
Interest Rate (Merchant)	14% p.a.
Processing Fee	1.5% /Min. Rs.150
Service Tax	18% on the aforementioned fees & interest charged
Foreclosure charges	3% of the outstanding principal amount

There are two ways through which customers can apply for Axis Bank credit card conversion. These are:

Merchant EMI Conversion

Here customers convert their purchases at the Point of Sale. The customer has to ask the cashier to convert the purchase into EMI at the time of payment, in case of retail purchases. This option is available only with select merchants.

For online purchases, the customer has to select the Pay via EMI option on the payment page. No-cost EMI conversion option, if available, can be availed at this moment.

Post Purchase EMI Conversion

In this scenario, customer can log in into their net banking account after a purchase has been made. The various methods are:

Netbanking

• Login to Axis Bank Net-banking account
• Go to Accounts
• Select My Credit Cards
• Click on Convert to EMI
• Select statement type from current / unbilled
• Choose the transactions that are to be converted
• Enter EMI details
• Agree to the Terms & Conditions
• Enter the NetSecure Code to complete the transaction

Mobile Application

• Login to Axis Bank Net-banking account
• Tap on Credit Cards
• Click on Convert to EMI
• Select the transaction through Statement/Unbilled Transactions
• Enter EMI details
• Agree to the Terms & Conditions
• Enter mPIN

Customer Care

Customers can reach out to Axis Bank credit card customer care number at 1860 – 419 – 5555 | 1860 – 500- 5555 to convert their purchases into EMI.

How does no-cost EMI work on Axis Bank credit card?
No-cost EMIs don’t charge the user an interest or processing fee. They are given on selected products and can be availed at the merchant’s place only. This means you cannot convert a purchase into no-cost EMI later on.

How long does it take to process EMI conversion request?
Axis Bank immediately accepts EMI conversion request. However, this does not mean your EMI has been created. Once processed, you will get an SMS and an email along with the amortisation schedule.

Can I pay Axis Bank credit card bill via EMI?
Axis Bank currently allows specific purchases on a credit card to be converted into EMI. Hence, you can’t pay the full outstanding amount via EMI.

When will foreclosure charges be applicable?
If you close your EMI account after 30 days of first EMI debit then foreclosure charge of 3% will be applied on the outstanding principal. If you cancel before the first EMI is debited then you will get a waiver on the processing fee and no foreclosure charges will be applied.

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, 9, 12, 18*, 24* Months

* Amounts over Rs. 30,000 can be converted into 18 & 24 month EMIs only.