Dishwasher suggestion

MrGordon said:
Sure, will do.



Yeah its a good trick, especially when coupled with ICICI/Axis I think, where all fees are reversed. Even with HDFC, only a small amount is not reversed. SBI is the worse of the lot with a 3% + GST foreclosure fee.



Thanks, yeah I did order the same Fortune detergent, salt and rinse aide.



Even if you have no intention of opting for EMI, you opt for the maximum possible tenure which offers no cost EMI. The interest component that would be charged is offered as an instant discount as compensation. Once the transaction is converted to EMI, you have to get the EMI cancelled by calling the bank's customer care. You get to keep the upfront discount that was offered.

ICICI/Axis is straight forward, and all charges (like EMI processing fee, GST) are reversed if cancelled within 15 days or so. In case of HDFC, you can do it from MyCards, and only the GST component is not reversed. SBI there is no option for cancellation and you have to foreclose by paying 3% + GST as foreclosure charges.

View attachment 211294
In this above case, the Rs 2003 discount is an extra discount which you will not be able to avail otherwise.

One thing to remember is that, if you do want to pay the amount in instalments, this trick wouldn't work as the upfront discount will just be compensating you for the interest that would get charged over the months.
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Thank you. That is an awesome trick. I should try next time. Does anyone know if we get Amazon pay points for EMI Transactions?
 
MrGordon said:
Once the transaction is converted to EMI, you have to get the EMI cancelled by calling the bank's customer care. You get to keep the upfront discount that was offered.
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Off topic but are we 100% sure that this will not impact customer's credit and services going forward ? I am sure the banks track these instances.
 
@ibose I don't believe this has any impact on the customer's credit rating or services going forward. We are simply placing a request as per the mutually agreed terms and conditions with the card issuer.

Just sharing an excerpt from the EMI conversion email ICICI sends

As per your request, we have converted the purchase made on your Credit Card xxxxx for Rs xxxx on xxxx, 2024 into Equated Monthly Instalments (EMIs).

Please find enclosed the Amortisation/Repayment schedule, which contains details of the interest and the principal components of your EMI.

In case you wish to cancel the EMI Facility, you can call us within 15 days from the date of conversion of the transaction. While the EMI Facility can be foreclosed, the prepayment charges will be applicable and the processing fee will not be reversed.
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After all, it's the T&Cs which govern all this, that we agree to as part of opting for the EMI facility. The T&Cs specifically allow the customer to cancel the EMI facility or foreclose it as per the specific terms laid down. Which is why the terms are different for each bank. In case of SBI, a foreclosure charge is mandatory whereas in case of ICICI, if done within 15 days, all charges are reversed.

Now if the banks would like to prohibit such cancellations, they are free to amend the T&Cs.
 
MrGordon said:
After all, it's the T&Cs which govern all this, that we agree to as part of opting for the EMI facility. The T&Cs specifically allow the customer to cancel the EMI facility or foreclose it as per the specific terms laid down. Which is why the terms are different for each bank. In case of SBI, a foreclosure charge is mandatory whereas in case of ICICI, if done within 15 days, all charges are reversed.

Now if the banks would like to prohibit such cancellations, they are free to amend the T&Cs.
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I understand they give an option to close the EMI because they are obligated to do that and one off instance may be fine. However my query was pertaining to the scenario of frequently cancelling EMIs after availing the extra discount. Banks track these instances and such frequent closures are likely to be treated differently. While I do not have any concrete proof of what they do, I would rather defer to someone working in one of these banks or CRAs or internal knowledge to advise. @Slayer69
 
MrGordon said:
Even if you have no intention of opting for EMI, you opt for the maximum possible tenure which offers no cost EMI. The interest component that would be charged is offered as an instant discount as compensation. Once the transaction is converted to EMI, you have to get the EMI cancelled by calling the bank's customer care. You get to keep the upfront discount that was offered.

ICICI/Axis is straight forward, and all charges (like EMI processing fee, GST) are reversed if cancelled within 15 days or so. In case of HDFC, you can do it from MyCards, and only the GST component is not reversed. SBI there is no option for cancellation and you have to foreclose by paying 3% + GST as foreclosure charges.
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GST should be some 30-40Rs right? I need to order a tv and offers are only there with NCEMI, so was thinking of using this trick with my HDFC CC

P.S. transaction is auto converted to EMI right? it'll be my first time opting for a EMI so am not familiar with it
 
ibose said:
I understand they give an option to close the EMI because they are obligated to do that and one off instance may be fine. However my query was pertaining to the scenario of frequently cancelling EMIs after availing the extra discount. Banks track these instances and such frequent closures are likely to be treated differently. While I do not have any concrete proof of what they do, I would rather defer to someone working in one of these banks or CRAs or internal knowledge to advise. @Slayer69
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The discount is not given just by the banks, it is mostly borne by the merchant or the manufacturer.
Anyway I have done such EMI cancellations at least 15-20 times in the last 1-2 years, never have I faced any issues.

altair21 said:
GST should be some 30-40Rs right? I need to order a tv and offers are only there with NCEMI, so was thinking of using this trick with my HDFC CC

P.S. transaction is auto converted to EMI right? it'll be my first time opting for a EMI so am not familiar with it
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Sure, go for it. For HDFC, you'd have to bear the GST on Rs 199 (EMI processing fee) and partial interest (and GST on the interest) from statement date till cancellation date. I don't understand their logic on this, but this is how it is for HDFC. On one instance, when I made the EMI cancellation request on the same day the transaction got converted to EMI, they didn't charge any partial interest.

So maybe keep an eye on when the transaction gets converted to EMI, and immediately cancel the EMI from HDFC MyCards.

Yes, if you opt for EMI from the merchant side (online or offline) it will be auto converted.
 
MrGordon said:
So maybe keep an eye on when the transaction gets converted to EMI, and immediately cancel the EMI from HDFC MyCards.

Yes, if you opt for EMI from the merchant side (online or offline) it will be auto converted.
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so just to confirm, I get the EMI from the merchant offline, it'll show as EMI by default since thats how they will charge (I am assuming), and then call HDFC customer care asap and have them cancel it?

P.S. will we receive a message/email saying that EMI was converted? would be easier to keep track of
 
Get the EMI processed by the merchant offline, choose the maximum possible no cost or low cost EMI tenure. Initially the entire amount would show up in the transaction history, in 1-3 days, it would get converted to EMI.

Once converted (you'd get an SMS or if you login to Netbanking, it should show up), go to https://mycards.hdfcbank.com/ from a mobile device, and you would have an option to see active EMIs and cancel it. I don't think HDFC takes cancellation request over the phone now that MyCards support it.
 
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