Is Axis bank scamming customer for credit card transactions through EMI ?

[Rashya]

Hi fellow forum members,

Recently I had purchased a mobile for Rs.50019/- in flipkart big billion day sale and converted to EMI. I had converted it into Emi transaction and Monthly EMI comes to 5905.86 for 9 months. Credit limit of the card is Rs.55000/-. Statement got generated and the EMI processing fee + tax was total due amount in statement, then I saw an amount of Rs.50019/- which I paid was credited back to credit card in it but available credit limit is shown as Rs.0 and EMI balances showed as Rs.53152.73.

This month’s statement is not yet generated, but in the APP I am seeing the 1st EMI of Rs.5905.86/- being debited and also an over limit fee of Rs.500+GST being charged.

Is it common practice among banks or is it only Axis bank is doing this ?

Moreover the bank has not intimated me either through sms/email about the over limit. I have requested for a reversal of over limit fee which was charged to me from the above point. Don’t know if they will reverse it.

@TechnoFino @Subhankar @bhavyegoel

 

[Rashya]

Hi fellow forum members,

Recently I had purchased a mobile for Rs.50019/- in flipkart big billion day sale and converted to EMI. I had converted it into Emi transaction and Monthly EMI comes to 5905.86 for 9 months. Credit limit of the card is Rs.55000/-. Statement got generated and the EMI processing fee + tax was total due amount in statement, then I saw an amount of Rs.50019/- which I paid was credited back to credit card in it but available credit limit is shown as Rs.0 and EMI balances showed as Rs.53152.73.

This month’s statement is not yet generated, but in the APP I am seeing the 1st EMI of Rs.5905.86/- being debited and also an over limit fee of Rs.500+GST being charged.

Is it common practice among banks or is it only Axis bank is doing this ?

Moreover the bank has not intimated me either through sms/email about the over limit. I have requested for a reversal of over limit fee which was charged to me from the above point. Don’t know if they will reverse it.

@TechnoFino @Subhankar @bhavyegoel

@bhavyegoel

 

[theranos]

Hi fellow forum members,

Recently I had purchased a mobile for Rs.50019/- in flipkart big billion day sale and converted to EMI. I had converted it into Emi transaction and Monthly EMI comes to 5905.86 for 9 months. Credit limit of the card is Rs.55000/-. Statement got generated and the EMI processing fee + tax was total due amount in statement, then I saw an amount of Rs.50019/- which I paid was credited back to credit card in it but available credit limit is shown as Rs.0 and EMI balances showed as Rs.53152.73.

This month’s statement is not yet generated, but in the APP I am seeing the 1st EMI of Rs.5905.86/- being debited and also an over limit fee of Rs.500+GST being charged.

Is it common practice among banks or is it only Axis bank is doing this ?

Moreover the bank has not intimated me either through sms/email about the over limit. I have requested for a reversal of over limit fee which was charged to me from the above point. Don’t know if they will reverse it.

@TechnoFino @Subhankar @bhavyegoel

On conversion of credit card emi the following is how it works
1.on transaction date your whole amount of transaction (without interest and gst) is deducted from credit limit

2.Post 3-4 days the transaction amount is converted to emi

3.then the First EMI amount+Interest+gst of 18% on interest will be deducted from the credit limit

4.next month on the same day of transaction ie say if your transaction was on 30th sep then on 30th oct the 2nd emi would be debited from credit limit
so if you don't have the exact limit equals to the amount debited in your credit limit then it would be considered as overlimit and charges are levied

so in your case 50k limit was blocked then so you had 5k limit out of which your first emi 5905 of first emi +60+gst is debited so of 5k limit 5965 got debited so it's overlimit.....this is how it works

although you pay for it as per billing cycle but charging on your card works on exact same day as that of transaction ...so keep atleast 5965+ as credit limit available on that particular date wouldn't attract overlimit charges

 

[Rashya]

On conversion of credit card emi the following is how it works
1.on transaction date your whole amount of transaction (without interest and gst) is deducted from credit limit

2.Post 3-4 days the transaction amount is converted to emi

3.then the First EMI amount+Interest+gst of 18% on interest will be deducted from the credit limit

4.next month on the same day of transaction ie say if your transaction was on 30th sep then on 30th oct the 2nd emi would be debited from credit limit
so if you don't have the exact limit equals to the amount debited in your credit limit then it would be considered as overlimit and charges are levied

so in your case 50k limit was blocked then so you had 5k limit out of which your first emi 5905 of first emi +60+gst is debited so of 5k limit 5965 got debited so it's overlimit.....this is how it works

although you pay for it as per billing cycle but charging on your card works on exact same day as that of transaction ...so keep atleast 5965+ as credit limit available on that particular date wouldn't attract overlimit charges

Thanks for your reply.

I want to update about my issue, I am seeing a reversal of overlimit fee + gst in the axis mobile APP which was done on 15th November.

Also I am not receiving any sms updates.

 

[Predator]

On conversion of credit card emi the following is how it works
1.on transaction date your whole amount of transaction (without interest and gst) is deducted from credit limit

2.Post 3-4 days the transaction amount is converted to emi

3.then the First EMI amount+Interest+gst of 18% on interest will be deducted from the credit limit

4.next month on the same day of transaction ie say if your transaction was on 30th sep then on 30th oct the 2nd emi would be debited from credit limit
so if you don't have the exact limit equals to the amount debited in your credit limit then it would be considered as overlimit and charges are levied

so in your case 50k limit was blocked then so you had 5k limit out of which your first emi 5905 of first emi +60+gst is debited so of 5k limit 5965 got debited so it's overlimit.....this is how it works

although you pay for it as per billing cycle but charging on your card works on exact same day as that of transaction ...so keep atleast 5965+ as credit limit available on that particular date wouldn't attract overlimit charges

If the limit is already blocked then why extra limit need to be free?
Only gst would be extra, for the rest amount each month's emi would use the blocked limit

 

[Predator]

Thanks for your reply.

I want to update about my issue, I am seeing a reversal of overlimit fee + gst in the axis mobile APP which was done on 15th November.

Also I am not receiving any sms updates.

Good for you

 

[Rashya]

Just noted another scam by Axis bank in the above purchase transaction converted to EMI

- Product price is Rs.50019/-

- Monthly EMI is Rs.5905.86/- including interest. Price after EMI conversion for 9 months is Rs.53152.74/-

- Hence total principle is Rs.50019/- and interest should be Rs.3133.74/- and they should have actually charged Rs.348.19/- as interest and Rs.5557.66/- as principle per month, but axis bank has charged Rs.616.67 as interest and Rs.5289.19 as principle per month, so now according to them principle is Rs.47602.71/- and interest is Rs.5550.03/-. They are also charging more GST of Rs.111/- for the interest of Rs.616.67/- whereas only Rs.62.67/- should have been charged as GST.

Do check screenshot for reference.

 

[CMGCMG is verified member.]

Just noted another scam by Axis bank in the above purchase transaction converted to EMI

- Product price is Rs.50019/-

- Monthly EMI is Rs.5905.86/- including interest. Price after EMI conversion for 9 months is Rs.53152.74/-

- Hence total principle is Rs.50019/- and interest should be Rs.3133.74/- and they should have actually charged Rs.348.19/- as interest and Rs.5557.66/- as principle per month, but axis bank has charged Rs.616.67 as interest and Rs.5289.19 as principle per month, so now according to them principle is Rs.47602.71/- and interest is Rs.5550.03/-. They are also charging more GST of Rs.111/- for the interest of Rs.616.67/- whereas only Rs.62.67/- should have been charged as GST.

Do check screenshot for reference.

You should have received a pdf "AXIS BANK : EMI Letter with Monthly EMI Details". Check that. If possible, share the screenshot of last page. Also please share the screenshot of amazon/flipkart interest breakup for the product.

 

[Predator]

Just noted another scam by Axis bank in the above purchase transaction converted to EMI

- Product price is Rs.50019/-

- Monthly EMI is Rs.5905.86/- including interest. Price after EMI conversion for 9 months is Rs.53152.74/-

- Hence total principle is Rs.50019/- and interest should be Rs.3133.74/- and they should have actually charged Rs.348.19/- as interest and Rs.5557.66/- as principle per month, but axis bank has charged Rs.616.67 as interest and Rs.5289.19 as principle per month, so now according to them principle is Rs.47602.71/- and interest is Rs.5550.03/-. They are also charging more GST of Rs.111/- for the interest of Rs.616.67/- whereas only Rs.62.67/- should have been charged as GST.

Do check screenshot for reference.

View attachment 7071

18 percent of 616 is Rs110.88 . So, 111 GST is as per calculation.
You must be missing some details and so ur calculations are not going according to statment.

 

[Predator]

Just noted another scam by Axis bank in the above purchase transaction converted to EMI

- Product price is Rs.50019/-

- Monthly EMI is Rs.5905.86/- including interest. Price after EMI conversion for 9 months is Rs.53152.74/-

- Hence total principle is Rs.50019/- and interest should be Rs.3133.74/- and they should have actually charged Rs.348.19/- as interest and Rs.5557.66/- as principle per month, but axis bank has charged Rs.616.67 as interest and Rs.5289.19 as principle per month, so now according to them principle is Rs.47602.71/- and interest is Rs.5550.03/-. They are also charging more GST of Rs.111/- for the interest of Rs.616.67/- whereas only Rs.62.67/- should have been charged as GST.

Do check screenshot for reference.

View attachment 7071

If its a no cost emi, then interest is offered as instant discount on the product. That's why principle is less than what you calculated

 

[Rashya]

If its a no cost emi, then interest is offered as instant discount on the product. That's why principle is less than what you calculated

It’s not no cost EMI