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Guide No-Cost EMI Cancellation Charges Across Banks: A Comprehensive Guide

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adityaka

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No-Cost EMI purchases are getting quite popular for obvious reasons. I have been looking into No-Cost EMI cancellation charges across all bank credit cards to see which one best fits my needs. So, I'm putting it here on the forum to help everyone.

Below is a guide on the process and charges for canceling No-Cost EMI (NCEMI) transactions across different banks. Policies may vary, so always verify with your bank before proceeding.

Axis Bank​

  • No foreclosure charges will be levied if the EMI is canceled within 30 days of booking. However, the processing fees will not be refunded.
  • If the cancellation is made after 30 days, it will be treated as a foreclosure, and pre-payment charges will apply.
  • Process: Call customer care to close the EMI.

Bank of Baroda (BoB)​

  • EMI, once approved and processed, can only be pre-closed.
  • A pre-closure charge of 3% of the balance principal outstanding or a minimum of ₹299, whichever is higher, will apply.
  • Along with pre-closure charges, pro-rata interest and the credit card's outstanding balance at the time of pre-closure must be repaid.
  • Additional interest, if any, on the principal outstanding from the last statement date till the EMI pre-closure date needs to be paid by the customer.
  • Process: Write to crm@bobcard.co.in or request through the Mobile App.

HDFC Bank​

  • If a customer pre-closes or cancels an EMI transaction, the following charges will apply:
    • Pre-closure interest charges
    • 3% Pre-closure Fee on the principal outstanding (as applicable)
    • Any benefits like payback points/instant discounts offered at the time of loan booking will be debited within 120 days of EMI closure.
  • Process: Cancel through the HDFC MyCards app.

ICICI Bank​

  • No charges if EMI is canceled within 15 days of conversion! :D
  • Process: Contact ICICI Bank's customer care to request cancellation.

State Bank of India (SBI)​

  • Foreclosure fee: 3% on the principal outstanding on a pro-rata basis, plus applicable taxes.
  • Additional interest: Interest accrued between the last statement date & the foreclosure request date will be added to the foreclosure charges.
  • Process:
    • You can pre-close the Merchant EMI facility with pre-payment charges.
    • Call SBI Card helpline at 39 02 02 02 (Prefix with STD code while calling from mobile) or 1860 180 1290 (for MTNL and BSNL lines).

General Tips​

  • Timing: Request EMI cancellation as soon as possible after conversion to minimize potential interest charges.
  • Communication: Always confirm the specific cancellation process and any associated charges with your bank, as policies may change over time.
I hope this guide helps! Feel free to share your experiences or updates if you've gone through the process with any of these banks.
 
Nice! Thanks for posting this. ICICI Bank no-cost EMI cancellation seems to be the best here.
 
Can someone confirm, if the instant discount has been debited from their HDFC card after closing the loan.
 
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