Have you recently Bought an Expensive Home Furnishing Item like a Leather Sofa Set or an Internet Smart TV on your Kotak Credit Card and worried to Pay the Bill ? Following into the footsteps of Market Leader in Credit Cards, HDFC, everybody is offering an option to convert High Value Purchases into EMI. Here is a Step-By-Step Guide on How to Convert your Kotak Credit Card Purchases into EMIs, the cost of servicing the EMI without negatively impacting your CIBIL Credit Report and Score.
What are the Terms & Conditions for Converting Purchases into EMI on Kotak Cards ?
- Transaction can be converted to EMI only within 15 days of transaction date.
- Only Retail Transactions above Rs.3000 can be converted to an EMI.
- EMI request can be accepted for a maximum amount of 75% of credit limit
- Please refer to EMI Conversion Terms & Conditions. [This Explains interest Rate on other Purchases, etc while your EMI payment is still in force]
- Your request would be processed subject to policy checks & availability of loan limit.
Kotak Card’s Online interface shows you the Transactions that are eligible for EMI as shown below,
If You click on the convert to EMI Link, then you will be taken to the Process of Conversion. In the above transaction, the conversion amount is Rs 9505 and thus is eligible for conversion. The following screenshot shows the available options of eMI that a customer can choose for – Varying from 3 to 24 months with Various Slabs of Interest Rates depending on your Credit Profile. Kotak’s internal Card Analytics Team generates your eligibility as shown below.
How is Kotak Bank Cards Making money if it is offering EMI at 0% ?
Kotak is charging a processing fee wherever the rate of interest on EMI is 0%. Because this helps for them to Tie-Up with Retailers and Market the product as Consumers normally don’t read the fine-print of the offer. The following Screenshot from Kotak’s online interface shows the Processing Fees charged on EMI.
Avail EMI instead of Defaulting on Cards
Annual Percentage Rate / APR on your Credit Card will be atleast 24%. If you do not pay your card balance in full, then this high APR is applicable on the balance. Thus, you should look for transactions that can be converted into EMI which come at Lower Rate of Interest and take advantage and keep paying until the card is fully paid so that your Experian / Equifax Credit History is not impacted.