Cancellation of EMI on IDFC Bank credit card

[pritish98]

Can anyone tell me if I foreclose the EMI will it be an effect to reduce my cibil score?

 

[akshayhs]

Can anyone tell me if I foreclose the EMI will it be an effect to reduce my cibil score?

If you miss any kind of payments, there's an effect on the score. Foreclosing EMIs should not reduce scores. Foreclosure is simply implying instead of taking the loan and let it mature, you're forecefully closing it early.

 

[CardSeeker]

Thats how it is. When you placed the order on EMI it will deduct the full amount and then convert to EMI since you have done it via flipkart and not credit card. So they will charge you all the possible charges there are even though you cancelled the order. Flipkart will not cancel the emi transaction. They will just refund the amount you paid back to the card. The cancellation is to be done via bank since its the bank giving you option of EMI. Also the T&C of IDFC is very clear on the processing fee of 1% or 199 which ever is more plus gst. Also you will be charged GST on the interest amount of the EMI. The no cost emi is by merchant and not the bank so what ever is the interest they will refund you but the interest amount will still incur gst on it which you will need to pay

i think the above inform

Can anyone tell me if I foreclose the EMI will it be an effect to reduce my cibil score?

actually its a merchant emi
normally if merchant cancelled the order then emi also gets autocancelled

some people are passing wrong information

just wait for the refund

 

[meetprj]

i think the above inform

actually its a merchant emi
normally if merchant cancelled the order then emi also gets autocancelled

some people are passing wrong information

just wait for the refund

Isnt the EMI given by the Bank? Even if the merchant is giving no cost emi the emi is processed by the partner bank correct? The merchant will get the payments from the bank in installments thats why the balance is blocked on the card and the merchant in assured of the payments from the bank. So how is it merchant emi?

 

[meetprj]

But in my case it was IDFC Bank and after cancelling the order I have called customer care immediately to cancel the EMI. But they are saying EMI don't get auto cancelled. You have to foreclose the EMI.

I have also received the same information

 

[CardSeeker]

Isnt the EMI given by the Bank? Even if the merchant is giving no cost emi the emi is processed by the partner bank correct? The merchant will get the payments from the bank in installments thats why the balance is blocked on the card and the merchant in assured of the payments from the bank. So how is it merchant emi?

product itself cancelled by merchant then where is the concept of merchant emi ??

 

[meetprj]

product itself cancelled by merchant then where is the concept of merchant emi ??

OK i am not sure but i think there is difference between customer order cancellation and merchant order cancellation. Once we swipe for the product or make the payment full amount is blocked by the bank and converted to emi even though it may be reflected later. After that even if we cancel the order the emi process has been started so all the processing fees and all will be charged. After cancellation the merchant will mark the order as cancelled but the process which has began cant be stopped midway. Please correct me if I am wrong because this is what information i received.

Supposedly my info was wrong. Sorry for all the confusion

 

[0xfallup]

OK i am sure but i think there is difference between customer order cancellation and merchant order cancellation. Once we swipe for the product or make the payment full amount is blocked by the bank and converted to emi even though it may be reflected later. After that even if we cancel the order the emi process has been started so all the processing fees and all will be charged. After cancellation the merchant will mark the order as cancelled but the process which has began cant be stopped midway. Please correct me if I am wrong because this is what information i receieved

nah everything will be reset if order is cancelled..because there's legally no contract now

 

[CardSeeker]

OK i am sure but i think there is difference between customer order cancellation and merchant order cancellation. Once we swipe for the product or make the payment full amount is blocked by the bank and converted to emi even though it may be reflected later. After that even if we cancel the order the emi process has been started so all the processing fees and all will be charged. After cancellation the merchant will mark the order as cancelled but the process which has began cant be stopped midway. Please correct me if I am wrong because this is what information i receieved

okay ur perception is different go ahead

 

[CardSeeker]

nah everything will be reset if order is cancelled..because there's legally no contract now

he has a different perception we cant argue

 

[meetprj]

okay ur perception is different go ahead

Sir this is not a perception. This is what i was informed. Thats why i asked in the end to correct me if the information given to me is incorrect

 

[meetprj]

nah everything will be reset if order is cancelled..because there's legally no contract now

OK so i was provided wrong information. Thanks for confirming

 

[CardSeeker]

Sir this is not a perception. This is what i was informed. Thats why i asked in the end to correct me if the information given to me is incorrect

i already shared the solution bro

 

[netsec]

I canceled one EMI on SBI Credit Card 2 days after the purchase by calling the customer care and the executive said it's not possible and I have to pay X amount for cancelation and I hung up.
Called customer care again, the another executive mentioned any EMI can be canceled without any charges within the 30 days of transaction and I canceled it without any charges.

Recently when I canceled order on Amazon, the EMI auto canceled along with processing charges.

In your case, try calling another CC executive or there Reporting Manager, they can surely waive off the amount with exception.

 

[CardSeeker]

I canceled one EMI on SBI Credit Card 2 days after the purchase by calling the customer care and the executive said it's not possible and I have to X amount for cancelation and I hung up.
Called customer care again, the another executive mentioned any EMI can be canceled without any charges within the 30 days of purchase and I canceled it without any charges.

Recently when I canceled order on Amazon, the EMI auto canceled along with processing charges.

In your case, try calling another CC executive or there Reporting Manager, they can surely waive off the amount with exception.

no charges for sbi emi cancellation ??

 

[netsec]

no charges for sbi emi cancellation ??

Yep!! I think this depends on cc executive knowledge and willingness to cancel EMI.

 

[Md Kaif]

But in my case it was IDFC Bank and after cancelling the order I have called customer care immediately to cancel the EMI. But they are saying EMI don't get auto cancelled. You have to foreclose the EMI.

As I am aware about IDFC FIRST BANK emi cancellation, you can close/cancel Credit card emi transaction within 7 days from the date of conversion without any changes. After 7 days i.e. from the 8th day u will have to pay foreclosure charges for closing the EMI

 

[pritish98]

As I am aware about IDFC FIRST BANK emi cancellation, you can close/cancel Credit card emi transaction within 7 days from the date of conversion without any changes. After 7 days i.e. from the 8th day u will have to pay foreclosure charges for closing the EMI

I think you are aware of old rules. When I called to cancel this they said it's a new change in their system, previously they did not charge for EMI cancellation probably.

 

[vaibhav111vaibhav111 is verified member.]

is this same process applicable for all other banks? Or only for IDFC Bank?

If this is the case we should not cancel or return any order on Flipkart/Amazon. Need to think twice before placing order.

In my experience with SBI SimplyClick in October/November 2022, I placed an order for a laptop worth around 60-70k on a no-cost EMI basis. However, I decided to cancel the order the next day. Although the order was successfully canceled, the no-cost EMI wasn't canceled initially due to some issue related to Amazon Cashback or similar reasons. After following up with the necessary parties, the no-cost EMI was eventually canceled, and I didn't have to pay a single rupee for the canceled order.

 

[Pramtesh]

I have purchased one laptop on Flipkart using IDFC Bank Select Credit card and I chose No cost EMI on the time of order. On the next day I have cancelled the order. But on the 3rd day I got a message from bank the transaction has been converted into EMI. As I have cancelled the order the principal amount has been refunded from Flipkart but the EMI is not yet cancelled. It's has been 7 days from the date of purchase and the EMI is still active. I have contacted IDFC Bank customer care but they are saying once it is converted into EMI it will not be getting auto cancelled, I have to forclose the EMI via mobile app or calling customer care.

The surprising fact is they have charged 1% of principal amount (98154) + 18% GST as a processing fee which is Rs. 1158.22 whereas other bank's charge is Rs. 235 (199+GST). And if I forclose the EMI I have to pay 3% of the principal amount + GST+ Interest till date from the date of purchase, which is a big amount.

Please suggest me what should I do now! This is very ridiculous that without purchasing anything I have to pay such a big amount.

Ask the bank to cancel the emi. Usually it should be done automatically.