EMI on HDFC Credit Card: Understanding the Purchase Deduction Process
When using your HDFC credit card for an EMI (Equated Monthly Installment) purchase, it's important to understand how the transaction is processed. This article aims to clarify the steps involved and address common queries regarding this process.
Understanding EMI Transactions
When making a purchase using the EMI option on your HDFC credit card, the bank typically deducts the entire amount of the transaction from your available credit limit at the time of the purchase. This might seem unexpected, especially if you plan to pay off the amount in installments. However, this is a standard practice in the credit card industry.
Full Amount Deduction
Full Amount Deduction: When you choose the EMI option, HDFC will immediately deduct the entire amount from your available credit limit to ensure that the transaction is secure.
EMI Setup and Installments
EMI Setup: After the purchase, HDFC will set up the EMI plan for you, splitting the total amount into smaller, manageable monthly payments over the agreed tenure, such as 3, 6, 9, or 12 months.
Monthly Payments: Each month, a fixed EMI amount will be charged to your credit card account, along with any applicable interest or fees. Gradually, your outstanding balance on the card will decrease as you make these payments.
Impact on Credit Limit
Since the full amount is deducted at the time of the purchase, your credit limit will be reduced by that amount until the EMI is fully paid off. This will affect your overall credit availability during the payment period.
Common Queries and Clarifications
If you find that the entire amount has been deducted from your HDFC credit card, it is normal and expected. Here’s how it works and what to expect:
Billing Explanation: The cost of the items purchased will be marked on your card statement. Your available credit limit will be reduced by the full purchase amount, and you will begin making monthly EMI payments. Unbilled Transactions: You can check your HDFC credit card statement for unbilled transactions within 1-2 days after the purchase. This will show you any discrepancies or expected charges. Customer Service Support: For any concerns or unclear billing, it’s advisable to contact HDFC customer service for clarification.EMI Scheme Explanation
It’s important to note that the EMI scheme is not a direct transaction between HDFC and Flipkart. HDFC pays Flipkart the full amount of the purchase, and then you have the flexibility to pay off the amount in installments through your credit card.
Final Thoughts
If you are concerned about the deduction of the full amount when making an EMI purchase or if you notice any unusual charges, it is recommended to reach out to HDFC customer service for assistance. Understanding the EMI process can help you manage your credit card balance and avoid any unexpected billing issues.