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.

 

[gogeta31]

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

and you repaid outstanding in 24 hrs or waiting till bill generation? Can I cancel today only from mycards or do I need to wait for a few days?

 

[shutapdiya]

and you repaid outstanding in 24 hrs or waiting till bill generation? Can I cancel today only from mycards or do I need to wait for a few days?

Will be repaying on statement generation

You won't be able to cancel from mycards today itself, may be after 3rd

 

[gogeta31]

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.

So on day5th everything is final, so I should not repay anything till my statement generation, even if they ask me to pay on day 3 because on day 4th processing fee is added and removed on 5th? @shutapdiya

 

[shutapdiya]

So on day5th everything is final, so I should not repay anything till my statement generation, even if they ask me to pay on day 3 because on day 4th processing fee is added and removed on 5th? @shutapdiya

read my previous msg again, I am not replying for same query twice

 

[gogeta31]

read my previous msg again, I am not replying for same query twice

NO I think you didn't understand the question. I am saying if we pay on 3rd(just to be secure as its not my card but friend's) will it messup anything as day 4th and 5th processing fee will come back?

 

[Akr706]

Not need to pay also till statement generation right?

Paying after statement generation date worked alright for you? I am in the same boat.

 

[hakunamatata]

Paying after statement generation date worked alright for you? I am in the same boat.

Yup, though I did pay some amount before statement generation.

 

[_dragon]

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.

@Harry1 thanks for the detailed steps. I recently cancelled my hdfc emi and these steps were helpful.

 

[gogeta31]

Will be repaying on statement generation

You won't be able to cancel from mycards today itself, may be after 3rd

Thanks it worked for me. Only 35 Rs they charged extra! I cancelled on day 3 and paid on day 3 also. 199+35 got added and 199 got reversed. Zero interest!

 

[shutapdiya]

Thanks it worked for me. Only 35 Rs they charged extra! I cancelled on day 3 and paid on day 3 also. 199+35 got added and 199 got reversed. Zero interest!

Congrats
Same happened with my txn as well in last week of December

 

[Lord Of Darkness]

@Harry1 thanks for the detailed steps. I recently cancelled my hdfc emi and these steps were helpful.

When did you pay the amount..was it after statement generation date or after closing the loan ?
My amount is over a lakh so wondering if i should pay up now or wait for statement generation. No cost emi discount of over 10k saved by this method.

 

[Lord Of Darkness]

Yup, though I did pay some amount before statement generation.

How much was the principal amount and how much did you pay before statement generation ? My next statement date is 15th Feb and payment date is 3 March which gives me enough cushion to not pay the principal amount of a lakh.

 

[_dragon]

When did you pay the amount..was it after statement generation date or after closing the loan ?
My amount is over a lakh so wondering if i should pay up now or wait for statement generation. No cost emi discount of over 10k saved by this method.

I paid it after the statement generation.

 

[Lord Of Darkness]

I paid it after the statement generation.

Thanks for replying. I will do that as well.

 

[Surya123]

I am planning to follow the similar steps as mentioned in the above posts. But can some one explain the below statement which is from the HDFC terms and conditions

**Customers can choose to cancel the EASYEMI transaction and pay in full instead of monthly instalments by calling the 24-hour HDFC Bank Credit Card Customer service. Cancellation will be allowed only if a customer calls within 4 days post transaction date. On cancellation original loan amount and merchant payback will be debited in full (and become payable), EMI debits will be credited, convenience will not be reversed. Once an EASYEMI transaction is cancelled on the card, the same cannot be reconverted.**

I am planning to do a no cost emi transaction at samsung offline store. Will I get the discount post foreclosing the emi?

 

[shivek]

My experience with NC EMI Cancellation using Tata Neu Infinity card:
D: Bought phone from Samsung estore using NC EMI (got ~11K discount)
D+3: Processing fee (199) and GST(35.82) debited.
D+11: Called customer care for cancellation. Got to hear the story of cancellation can be done from merchant only. Bank will preclose and charges will be applicable. (11days interest @15% + GST, processing+GST will not be reversed, need to pay the total within 24hrs). Confirmed for preclosure.
D+12: Processing fee credited and EMI Principal debited
D+14: Statement generated ( even got neu points @1.5% on the emi principal)

 

[hiteshgoyal850]

My experience with NC EMI Cancellation using Tata Neu Infinity card:
D: Bought phone from Samsung estore using NC EMI (got ~11K discount)
D+3: Processing fee (199) and GST(35.82) debited.
D+11: Called customer care for cancellation. Got to hear the story of cancellation can be done from merchant only. Bank will preclose and charges will be applicable. (11days interest @15% + GST, processing+GST will not be reversed, need to pay the total within 24hrs). Confirmed for preclosure.
D+12: Processing fee credited and EMI Principal debited
D+14: Statement generated ( even got neu points @1.5% on the emi principal)

They mention 3% foreclosure charges and shows it 0. Do they actually charge it or its 0?

 

[shivek]

They mention 3% foreclosure charges and shows it 0. Do they actually charge it or its 0?

They just mention. Even in the mail received after you request for closure will mention these and ask to pay within 48hrs.
But you can ignore these and make payment as you do normally for your card.

 

[ananthk324]

They mention 3% foreclosure charges and shows it 0. Do they actually charge it or its 0?

No foreclosure charges but now HDFC charges a pro rata interest.
Back in January I did a no cost EMI purchase and then closed the EMI the next day after EMI creation and I was charged only the GST on processing fees.

Last week I did a no cost EMI transaction with the same merchant and again foreclosed it a day after EMI creation but I was charged a interest of Rs 6.54 plus GST on it, on a transaction amount of 15k. Also charged the GST on processing fees as expected. Don't understand for how many days they calculated that pro rata interest.
Last time the EMI was shown as MER EMI and the recent one is shown as OFFUS EMI in transactions.

 

[ananthk324]

No foreclosure charges but now HDFC charges a pro rata interest.
Back in January I did a no cost EMI purchase and then closed the EMI the next day after EMI creation and I was charged only the GST on processing fees.

Last week I did a no cost EMI transaction with the same merchant and again foreclosed it a day after EMI creation but I was charged a interest of Rs 6.54 plus GST on it, on a transaction amount of 15k. Also charged the GST on processing fees as expected. Don't understand for how many days they calculated that pro rata interest.
Last time the EMI was shown as MER EMI and the recent one is shown as OFFUS EMI in transactions

What the user sees as pro rata interest in MyCards app and foreclosure confirmation email is not the actual interest they charge. Their systems are messed up. Last time they charged me Rs 0 and this time they charged Rs 6.5 as interest.