These credit card purchases cannot be converted to Emitted
Converting credit card expenses into equivalent monthly installments (EMI) helps a user make expensive purchases without burning their pockets. Users are allowed to convert all or part of their invoice to EMI. Typically, credit card issuers offer customers the option of converting dues for any transaction above a threshold into EMI, at a lower interest cost and for a comfortable term. The facility can also be used by those who cannot make immediate repayment before the due date. The option is available on a variety of items that can be purchased using a credit card, such as electronics, travel expenses, clothing, lifestyle expenses, and business expenses. ‘insurance.
Although the EMI conversion feature appears to be a winning proposition for card users, it is not available for all major purchases.
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Here is an overview of some credit card purchases that cannot be converted to EMI.
Gold and jewelry – In 2013, the Reserve Bank of India (RBI) instructed banks not to convert gold purchases made by credit card to EMI in a bid to reduce retail consumption of the yellow metal. Previously, many banks active in the credit card business offered EMI facilities for the purchase of gold and diamond jewelry. A similar directive was again issued by the RBI in 2018, prompting most banks to stop EMI options in credit card jewelry purchases.
Older purchases – HDFC Bank does not allow conversion of credit card transactions that have exceeded 60 days or more into EMI. Some banks may not allow a user to convert purchases older than one month to EMI. A credit card user may not be allowed to split fuel bills or cash transactions into EMI.
(Edited by : Sudarsanan Mani)