RBL Bank Credit Card EMI

Fees and Charges for RBL Bank Credit Card EMI

The fees and charges for RBL Bank credit card EMI are as follows:

How to Apply for RBL Bank Credit Card EMI?

You can apply for RBL Bank credit card EMI conversion in the following methods:

Post-Purchase EMI Conversion: After making a purchase with the 'Split n Pay' option, you can convert it into an EMI using one of the following ways:

1. SMS - Type 'EMI' and send it to 5607011.
2. Mobile App - Step 1: Open the 'RBL MyCard' mobile app. Step 2: Log in to your account. Step 3: Tap on the 'Convert Credit Card Transactions into EMI' option. Step 4: Choose the purchases that are eligible to be converted into EMIs. Step 5: Select the tenure and confirm.
3. Customer Service - You can contact the customer care of RBL Bank to make an RBL Bank credit card EMI conversion.

Merchant EMI Conversion - You have the option of converting your purchases into EMIs for online as well as in-store transactions. To avail this option, you have to request the EMI payment option when making a payment. If you are making a purchase online, you need to select the 'Pay with EMI' option at the checkout. Note that this option may be limited to some merchants.

Benefits of RBL Bank Credit Card EMI

The advantages of RBL Bank credit card EMI conversion are as follows:

1. Make payments conveniently - You can pay for your purchases in small instalments over time.
2. Reduced financial burden - Your financial strain lowers significantly since you do not have to pay the entire amount upfront.

Disadvantages of RBL Bank Credit Card EMI

The disadvantages of RBL Bank credit card EMI conversion are as follows:

1. EMI conversion is not free: The 'Split n Pay' option offered by RBL Bank cannot be availed for free. You must pay the processing charge as well as interest on the amount. The interest rate starts at 13.00% and it may use up your earnings.
2. Credit Utilisation Ratio rises: The EMI amount is blocked against the credit limit of your card. Thus, the credit limit available decreases and new transactions are made using the remaining credit limit. This raises your Credit Utilisation Ratio (CUR), thereby lowering your credit score.
3. Blocked credit limit: The amount converted into an EMI is blocked against your credit limit. After every EMI payment, the credit limit is unlocked gradually.

Things to Keep in Mind about RBL Bank Credit Card EMI

If you are an RBL Bank credit cardholder and want to apply for EMI conversion, here are a few things to remember:

1. Tenure - In general, longer tenures incur lower interest rates on EMI payments. However, you must not apply for longer tenure since you may be required to pay higher interest. While a longer tenure option needs fewer EMI payments, it may not offset the applicable interest amount.

Here is an example that will give you better clarification:

Assumptions

1. Interest rate for a tenure of 3 months - 25% p.a.
2. Interest rate for a tenure of 12 months - 15.00% p.a.
3. Purchase price: Rs.20,000

The interest amount to be paid for various tenures is mentioned in the table below:

2. Make payments on time - You must select an EMI plan that ensures you make payments on time. Late payments might result in a hefty credit card statement. The following are the reasons behind this:

1. EMI conversions do not eliminate the interest-free period; however, late payments do. Thus, the interest rates will apply to both previous and new transactions.
2. In case of any missing payments, RBL Bank will notify the credit bureau which will thereafter lower your credit score.
3. If you fail to pay the entire amount by the due date, an interest rate will be levied on the payable amount. This results in a substantial amount of interest accumulating because it is charged in addition to the EMI interest.

3. Loss of benefits: Merchant EMI conversions may result in the loss of discounts and reward points given on one-time payments. Therefore, if you get considerable benefits, you should pay in whole rather than through EMIs.

4. Compare interest rates: The interest rates on EMIs are different for various credit cards. The interest rates on credit cards issued by the same bank might occasionally vary. Thus, if you own multiple credit cards, you must compare the interest rates offered on each one.

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