Query- HDFC EMI Pre-Closure

[22sumit]

So I ordered a phone from Amazon on EMI and got Rs 750 extra discount on same for using a 6 months emi service.
Since the EMI was done via merchant portal so I don't have option of cancelling it (as per cc) and only pre-closure is allowed.
I got additional nominal charges as below:

-Loan O/s: 15994.36
- 3% Pre-Closure Charges: Rs. 0

- Pro-rata Interest Rs. 42.65
- GST: 7.68
Total Loan amount to pay: Rs. 16044.69

The cc executive asked to pay this amount within 24-48 hrs after pre-closure.

As some of the members are already expert and have gone through this earlier, it would be really helpful if someone can address my doubts.
1. Will they be charging processing fees of Rs 199+gst on top of it later?
2. I already have an outstanding amt since my last bill was generated, so will paying Rs. 16044.69 will get adjusted towards the already generated bill amount or this emi. How will the system distinguish this?
3. Any other tips to avoid any extra charges.

 

[4uziaul]

I paid that.
Before that I called CC and they said if I would had cancelled the EMI by calling them on Customer Care then I didn't need to pay anything in 24 hours. It would have had adjusted in the upcoming bill only. Also they said I even didn't need to pay any processing fee as well. But since I foreclosed the EMI through MyCards app, I have to pay Processing Fee and some interest as well( if applicable ) and also I need to pay everything within 24 hours.

Is this true?

They also said if I cancel the EMI by calling then it is called EMI cancellation but if I close it through MyCards it is called foreclosure and that's the reason why these two different things have different results.

If you call them again, someone else might provide a different version of the same story. 😄

What's the amount being shown on the app right now, that you have to pay?

 

[kshitij_0]

If you call them again, someone else might provide a different version of the same story. 😄

What's the amount being shown on the app right now, that you have to pay?

I paid everything. Nothing to pay now.
They asked me to pay prinicipal amount alongwith
1) Pro-rata interest- 119
2) GST on that- 21.5

In the statement I can see Rs 199 Processing fee as well but they didn't ask me to pay that. Probably they'll reverse that?

 

[Martius]

I paid everything. Nothing to pay now.
They asked me to pay prinicipal amount alongwith
1) Pro-rata interest- 119
2) GST on that- 21.5

In the statement I can see Rs 199 Processing fee as well but they didn't ask me to pay that. Probably they'll reverse that?

Can someone confirm that this is what also happens in case of HDFC DCEMI? Like the upfront discount will not be reversed on cancellation right? Also will foreclosure charges be added? And finally in case of DCEMI I believe the amount will get auto debited from account after cancellation right?

 

[binno]

I believe the amount will get auto debited from account after cancellation right?

Yes 👍 ✌️

 

[Martius]

Yes 👍 ✌️

Thank you for replying!!

 

[Harry1]

My experience on hdfc cc emi cancellation on hdfc smartbuy transaction.

Day-1: Did transaction with instant discount and merchant emi discount.

Day-2: Got loan entry under my cards and Mobile app. Interestingly first month emi amount was a bit high compared to other months. (Can't cancel it on same day, tried cancelling on my cards app, it showed some interest (and gst) charges, but didn't close after OTP. Customer care also said same thing and asked to call tomorrow.

Day-3: Cancelled emi from mycards app. It showed increased interest amount from yesterday. Also, they refer it as preclosure rather than emi cancellation and ask to pay in 24 hours. But but don't worry about it and ignore it, as interest (and gst) is never charged and u don't need to pay anything until next statement generation.

Day-4: EMI status shows closed. 199 processing fee gets added under unbilled.

Day-5: 35.82 GST gets added under unbilled. 199 processing fee gets reversed. Loan amount gets added (only principal) under unbilled. As mentioned earlier, no Interest is added.

Day-6: No GST reversal. No base reward points (as per card terms, easy emi transactions are not applicable for reward points). No Smartbuy bonus points (As per Smartbuy terms, Easyemi is applicable for bonus points, but not applicable for preclosure "Customer will not be eligible for SmartBuy benefit in case of loan pre-closure"). So, A cancelled/preclosed emi is considered neither under normal transaction not under easy emi transaction. And doesn't give normal as well as bonus points.


TLDR: Only extra charges are 35.82 GST above what you pay during transaction. No base as well as Smartbuy reward points.

 

[Fracture_fixer]

H

My experience on hdfc cc emi cancellation on hdfc smartbuy transaction.

Day-1: Did transaction with instant discount and merchant emi discount.

Day-2: Got loan entry under my cards and Mobile app. Interestingly first month emi amount was a bit high compared to other months. (Can't cancel it on same day, tried cancelling on my cards app, it showed some interest (and gst) charges, but didn't close after OTP. Customer care also said same thing and asked to call tomorrow.

Day-3: Cancelled emi from mycards app. It showed increased interest amount from yesterday. Also, they refer it as preclosure rather than emi cancellation and ask to pay in 24 hours. But but don't worry about it and ignore it, as interest (and gst) is never charged and u don't need to pay anything until next statement generation.

Day-4: EMI status shows closed. 199 processing fee gets added under unbilled.

Day-5: 35.82 GST gets added under unbilled. 199 processing fee gets reversed. Loan amount gets added (only principal) under unbilled. As mentioned earlier, no Interest is added.

Day-6: No GST reversal. No base reward points (as per card terms, easy emi transactions are not applicable for reward points). No Smartbuy bonus points (As per Smartbuy terms, Easyemi is applicable for bonus points, but not applicable for preclosure "Customer will not be eligible for SmartBuy benefit in case of loan pre-closure"). So, A cancelled/preclosed emi is considered neither under normal transaction not under easy emi transaction. And doesn't give normal as well as bonus points.


TLDR: Only extra charges are 35.82 GST above what you pay during transaction. No base as well as Smartbuy reward points

Hi I opened the my cards page and tried to preclose the emi but I’m being charged “prorata interest charges since last stament date” but no preclosere charges( did the emi transaction 5 days back and well within the current billing cycle). Is this normal ? @Harry1

 

[Harry1]

H


Hi I opened the my cards page and tried to preclose the emi but I’m being charged “prorata interest charges since last stament date” but no preclosere charges( did the emi transaction 5 days back and well within the current billing cycle). Is this normal ? @Harry1

Yes, already mentioned in day-2 and day-3 points. If u don't read, i can't help.

 

[Fracture_fixer]

Yes, already mentioned in day-2 and day-3 points. If u don't read, i can't help.

i have read it fully! that prorata charges is what u have mentioned as increased interest in day 3 I guess.i Must have misunderstood it. Sorry for it as I’m new to no cost emi and its intricacies. Thanks for helpin.

 

[hakunamatata]

My experience on hdfc cc emi cancellation on hdfc smartbuy transaction.

Day-1: Did transaction with instant discount and merchant emi discount.

Day-2: Got loan entry under my cards and Mobile app. Interestingly first month emi amount was a bit high compared to other months. (Can't cancel it on same day, tried cancelling on my cards app, it showed some interest (and gst) charges, but didn't close after OTP. Customer care also said same thing and asked to call tomorrow.

Day-3: Cancelled emi from mycards app. It showed increased interest amount from yesterday. Also, they refer it as preclosure rather than emi cancellation and ask to pay in 24 hours. But but don't worry about it and ignore it, as interest (and gst) is never charged and u don't need to pay anything until next statement generation.

Day-4: EMI status shows closed. 199 processing fee gets added under unbilled.

Day-5: 35.82 GST gets added under unbilled. 199 processing fee gets reversed. Loan amount gets added (only principal) under unbilled. As mentioned earlier, no Interest is added.

Day-6: No GST reversal. No base reward points (as per card terms, easy emi transactions are not applicable for reward points). No Smartbuy bonus points (As per Smartbuy terms, Easyemi is applicable for bonus points, but not applicable for preclosure "Customer will not be eligible for SmartBuy benefit in case of loan pre-closure"). So, A cancelled/preclosed emi is considered neither under normal transaction not under easy emi transaction. And doesn't give normal as well as bonus points.


TLDR: Only extra charges are 35.82 GST above what you pay during transaction. No base as well as Smartbuy reward points.

I also ignored the pro rata interest shown, but received mail to pay the principal + interest + gst by tomorrow. The interest amount is hefty (about 1k).
Should I have cancelled thru customer care?

 

[Harry1]

I also ignored the pro rata interest shown, but received mail to pay the principal + interest + gst by tomorrow. The interest amount is hefty (about 1k).
Should I have cancelled thru customer care?

I g n o r e.

 

[hakunamatata]

I g n o r e.

Not need to pay also till statement generation right?

 

[Harry1]

Not need to pay also till statement generation right?

Y e s

 

[gogeta31]

I ordered a product from Flipkart using HDFC credit card and now want to cancel emi to get NO cost EMI discount. What is the procedure? What things I have to keep in mind to make sure emi doesnt get started. Or is it like after first EMI I have to cancel? Can somebody explain in detail.

 

[SpiesCan'tCatchMe]

This topic is already discussed please search in the forum

 

[gogeta31]

I paid that.
Before that I called CC and they said if I would had cancelled the EMI by calling them on Customer Care then I didn't need to pay anything in 24 hours. It would have had adjusted in the upcoming bill only. Also they said I even didn't need to pay any processing fee as well. But since I foreclosed the EMI through MyCards app, I have to pay Processing Fee and some interest as well( if applicable ) and also I need to pay everything within 24 hours.

Is this true?

They also said if I cancel the EMI by calling then it is called EMI cancellation but if I close it through MyCards it is called foreclosure and that's the reason why these two different things have different results.

which one is the final approved method. I should just call them and ask to cancel then no processing charges will be there? Or mycards can do the same thing.

 

[SpiesCan'tCatchMe]

which one is the final approved method. I should just call them and ask to cancel then no processing charges will be there? Or mycards can do the same thing.

Yes mycards will do the trick or atleast it did for me

 

[shutapdiya]

Or mycards can do the same thing.

Correct . .

 

[gogeta31]

Correct . .

so on call emi cancellation and mycards foreclosure is same thing? Some people mentioned its better to do on call.

 

[shutapdiya]

so on call emi cancellation and mycards foreclosure is same thing? Some people mentioned its better to do on call.

Last week I did from mycards, processing fee reversed and only 30-40 rs GST charged