RBL Bank Credit Card EMI

RBL credit card EMI facility, Split n Pay, has its share of advantages and disadvantages. Here are some of the pros and cons of RBL Credit Card EMI conversion:

Benefits of RBL Credit Card EMI Conversion

The benefits of converting your credit card purchases into EMIs are mentioned below:

Deferred Payment: Customers can pay off their purchases in small parts over an extended time period.

Low Upfront Financial Strain: As the full amount is broken up into small parts, the immediate financial strain borne by the cardholder is reduced considerably. This can come in handy for salaried individuals who live on a tight budget.

Drawbacks of RBL Credit Card EMI Conversion

No doubt EMI conversion is beneficial for people with low repayment capacity. However, there are certain drawbacks which you consider while opting for the same:

Interest: RBL Bank’s EMI conversion facility, Split ‘n’ Pay, isn’t free. The customer will be liable to pay the processing fee and interest on the amount. The RBL Credit Card EMI interest rate starts from 13% p.a. This incurred interest might drain the customer’s savings.

Blocked Credit Limit: The amount that is converted into EMI is blocked against the cardholder’s credit limit. The limit is unlocked gradually on the payment of each EMI.

Increased Credit Utilization: Since the amount converted into EMI is blocked against the credit limit. The available credit limit is reduced & new purchases use the remaining credit limit. This increases the Credit Utilization Ratio (CUR), which in turn reduces the customer’s credit score.

Planning to convert your purchases into EMIs? Click here for detailed information.

There are two ways through which customers can apply for RBL Credit Card EMI conversion. Here are the details regarding the same:

Merchant EMI Conversion: Cardholders have the option to convert their credit card purchases into EMIs at the time of payment. This is valid for both online and retail purchases. Just ask for the EMI payment option at the time of payment. In case of online purchases, click on the ‘Pay via EMI’ option at the time of payment. This option may be available only with select merchants.

Post Purchase EMI Conversion: In case the cardholder wants to make an RBL Credit Card EMI conversion post-purchase using the ‘Split n Pay’ feature, they can do so using any of the following methods:

Mobile App: Follow the below-mentioned steps:

1. Login to RBL MyCard mobile app
2. Tap on Convert Credit Card Transactions into EMI
3. Select eligible purchases for EMI conversion
4. Choose tenure & confirm

SMS: Send the SMS; EMI to 5607011

Customer Care: Customers can call on the RBL Credit Card customer care number printed at the back of the credit card.

The fees and charges associated with RBL Credit Card EMI conversion are mentioned in the table below:

Type of Fee/ Charge	Amount
Interest Rate	Starts from 13% p.a.
Processing Fee	Shared at the time of application
GST	18% on the fees & interest charged
Foreclosure charges	3% of the unpaid principal amount

Here are a few important points that one must bear in mind when applying for RBL Credit Card EMI conversion:

Tenure: Generally, longer tenures charge low-interest rates when it comes to EMI payments. However, customers should avoid applying for the longer tenure options as they might end up paying more interest. The longer tenure option requires less EMI payment but this benefit might not make up for the payable interest amount. The below given example 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. 20,000

Now, the payable interest amounts for different tenures are:

Tenure	Payable Interest Amount
3 Months	Rs. 1,232.88
12 Months	Rs. 3,000

Credit Card: Different credit cards charge different rates of interest on EMIs. Sometimes, credit cards from the same bank charge different interest rates. Therefore, people with multiple cards should compare the offered interest rates.

Lost Benefits: Merchant EMI conversions can lead to loss of reward points or discounts offered on one-time payments. If customers are offered significant benefits, then it is advisable that the customers should pay upfront instead of EMIs.

Timely Payments: Customers should choose an EMI option where they can make timely payments. Missed payments can lead to a huge credit card bill. The reasons for this are:

• Lost Interest-free Period: EMI conversions don’t remove the interest-free period but missed payments do. This will result in credit card interest rates being applied to old and new purchases.
• Credit Card Interest Rate: RBL credit card interest rate becomes effective when the full balance isn’t paid by the due date. This is charged on top of the EMI interest & thus leads to a significant amount of interest accumulation.
• Credit Score: RBL Bank will report any missed payments to the credit bureau. The bureau, in turn, will reduce the customer’s credit score.

Q. Does RBL Bank credit card provide no-cost EMI?
A. Currently, RBL Bank credit cards don’t provide a no-cost EMI option. If you want to avail EMI option on your credit card, then you can opt for the “Split n Pay” feature.

Q. How long does it take to process an EMI conversion request?
A. RBL Credit Card EMI conversions don’t take a lot of time. Cardholders will be notified via email or SMS post-conversion once the request is processed.

Q. Can any purchase be converted into EMI?
A. No, jewelry purchases cannot be converted into EMIs. To see the eligible transactions that can be converted into EMI, log into MyCard mobile app. An EMI symbol will be displayed next to the eligible transactions.

Q. What is EMI Infinity Pass?
A. EMI Infinity Pass is a scheme brought out for those cardholders that frequently convert purchases into EMIs. The benefits of this Pass are:

• 100% cashback on 1^st Split ‘n’ Pay processing fee
• Unlimited 20% cashback on the rest of Split ‘n’ Pay processing fee
• The scheme is valid for 1 year
• Exclusive offers on EMI conversion throughout the year

Q. What are the tenure options provided on EMI conversions?
A. You may avail the following tenure options on EMI conversions: 3, 6, 9, 12, 18 and 24 months.