ICICI Credit Card EMI

ICICI Bank Credit Card EMI conversion allows you to pay for your big ticket purchases in smaller portions and as per your repayment capacity. Below mentioned are the benefits & drawbacks associated with this facility:

Benefits of ICICI Credit Card EMI Conversion

Partial Payments: Through ICICI Credit Card EMI conversion, customers can pay off the large amount in small portions over a few months. This is helpful especially if the cardholder is unable to pay the full amount at once.

Low Up-front Financial Strain: As cardholders are paying off the amount over an extended period of time, their savings or monthly salary does not bear a large burden. Thus, they suffer less financial strain.

No-cost EMI: This is the best ICICI Credit Card EMI conversion option. This is because the customer gets the benefit of EMIs without having to pay interest or processing fees.

Drawbacks of ICICI Credit Card EMI Conversion

Interest: EMI conversion facility isn’t provided for free. ICICI Bank charges an interest rate of 15.96% (post-purchase) or 12.99% (merchant EMI). Thus, interest on big-ticket purchases with extended tenures can be quite significant.

Blocked Credit Limit: The full amount converted into EMI is blocked against the credit limit and released upon the payment of EMIs. Thus, the available credit limit is temporarily reduced.

Increased Credit Utilization: Since the transacted amount is blocked against the credit limit, new purchases will use the remaining credit limit. Now, the customer will use more than the usual amount of credit limit. This will result in an increased Credit Utilization Ratio (CUR) which in turn will decrease the credit score.

Another option to deal with high credit card bills is ICICI Credit Card loan.

ICICI Credit Card EMI conversion facility can be availed at the time of purchase or afterwards. The details are given below:

Merchant EMI Conversion: EMI Conversion facility can be availed at the time of payment at certain merchant stores. In case of retail purchases, the customer just has to ask for this facility. However, in case of online purchases, the cardholder has to select the “Pay via EMI“ option. If available, users can also apply for the no-cost EMI option at the time of purchase.

Post Purchase EMI Conversion: There are three ways to apply for the post-purchase EMI facility. Here are the details regarding the same:

Netbanking: Follow the below-mentioned steps:

1. Log in to ICICI Bank net banking account
2. Go to credit cards under my accounts section
3. Click on convert to EMI
4. Select the card, transaction(s) & tenure
5. Click on submit

iMobile App: Cardholders can follow the below-mentioned steps to avail this facility:

1. Log in to ICICI Bank iMobile app
2. Click on the cards section
3. Select the credit card
4. Click on convert to EMI against the eligible transactions in the recent transactions section
5. Choose a tenure and click on submit

Customer Care: Cardholders can also give a missed call on 9537667667 from the registered mobile number. ICICI Bank’s representative will call the customer within 2 working days upon receiving the request.

Click here to know more about credit card EMI conversion.

Below mentioned are the fees and charges associated with ICICI Bank Credit Card EMI conversion:

The following points must be kept in mind while applying for ICICI Bank Credit Card EMI conversion.

Tenure: Cardholders are usually offered a low-interest rate on longer tenures and a high-interest rate on shorter tenures. This might make the low-interest rate tempting to apply for, but this isn’t a good idea. The following illustration will make the point clearer.

Assumptions made:

• Interest on 3 months’ tenure: 20% p.a.
• Interest on 12 months’ tenure: 18% p.a.
• Purchased amount: Rs. 40,000

Now, the interest amounts for different tenures are:

Clearly choosing the shorter tenure is the right way to go.

Credit Card: Different banks charge different interest rates. Sometimes, cards from the same bank might charge different interest rates. Hence, users must compare the interest rates offered on all their cards before choosing the EMI facility.

Lost Benefits: Customers may have to let go of reward points or discounts if they opt for ICICI Credit Card EMI conversion. In this scenario, customers should save up for the purchase rather than opting for EMI conversion if the benefits are significant.

Timely Payments: All EMI payments must be made in a timely manner. Cardholders should also ensure whether they will be able to pay off the EMI installments and the credit card bill. Failure in making timely payments will result in a huge credit card statement. This will be because of the following reasons:

• Loss of Interest-free Period: Failure to clear the credit card bill will invalidate the interest-free period. Therefore, new purchases will incur credit card interest.
• Credit Card Interest Rate: Non–payment will incur ICICI credit card interest rate. This interest will be applied on top of the EMI amount and outstanding amount. Thus, only a few missed payments will result in excessive accrual of interest.
• Credit Score: Missed payments will be reported to the credit bureau which will reduce the customer’s credit score

Q. Can I cancel the EMI facility post application?
A. Yes, you can cancel the facility within 15 days of availing the EMI facility. Simply call on the ICICI Bank credit card customer care number, i.e., 1860 120 7777 and ask for cancellation.

Q. What are pre-closure charges on EMI conversion?
A. If you close the credit card account before the due date then a foreclosure fee or advance EMI interest and GST as applicable will be charged by the bank. The fees will be declared when you place a request for account closure.

Q. Can every spend be converted into EMI?
A. No, you cannot convert every purchase into EMI. The jewelry purchases or cash transactions are not applicable for credit card EMI conversion.

Q. What is the instant EMI facility?
A. The EMI conversion facility provided at the time of purchase at certain retailers is called the Instant EMI facility. You can avail this facility at the time of purchasing the product.

Q. What are the tenure options provided on EMI conversions?
A. The tenure options are different for no-cost EMI and normal EMI. For no-cost EMI, the tenure options are 3, 6, 9 and 12 months. Whereas, the tenure options for normal EMI are 3, 6, 9, 12, 18 and 24 months.