Dilemma over HDFC NC-EMI Cancellation

[curios_mind_huh]

I just made a purchase on Amazon with my HDFC Millennia credit card that saved me Rs.10,000 in instant discount and an additional Rs.4,500 in No-Cost EMI discount. The processing fee is Rs.353 and the foreclosure charge comes out to Rs.2000. Even if I foreclose the EMI without waived charges, I'll still be in the gains because of the huge upfront No-Cost EMI discount.

This is where the dilemma starts. I've already read all the posts here about the foreclosure charges levied by HDFC. I made a similar EMI transaction with HDFC on 4th December,2024 and fore-closed the EMI via MyCards as soon as it got converted. Despite what everyone said, HDFC did not charge foreclosure fee (even though it was mentioned in MyCards app) and even refunded the processing fee (without GST). What more, contrary to the popular belief the instant discount on EMI wasn't reversed till now as well.

I don't know if much has changed from then. I'm okay paying the processing and foreclosure fee for EMI cancellation. But if HDFC really does reverse the Rs.10,000 instant discount, it absolutely does not make any sense to cancel the EMI. Does HDFC really do this and Has anyone experienced this?

Update: I pre closed the EMI from mycards on May 1, 2025. When I went through terms and conditions, there was indeed a clause that stated "No charges apply in case EMI is closed within 3 days". HDFC also asked me to settle the whole principal, charges and processing fee within the next day and I did so as well. The processing fee was reversed, it's GST was not and no pre-closure charges were debited as of today.

There are terms and conditions which state the instant discount will get debited within 120 days, but I hope not. I'll update this space after 120 days if HDFC decides to cancel the instant discount.

 

[hender]

I just made a purchase on Amazon with my HDFC Millennia credit card that saved me Rs.10,000 in instant discount and an additional Rs.4,500 in No-Cost EMI discount. The processing fee is Rs.353 and the foreclosure charge comes out to Rs.2000. Even if I foreclose the EMI without waived charges, I'll still be in the gains because of the huge upfront No-Cost EMI discount.

This is where the dilemma starts. I've already read all the posts here about the foreclosure charges levied by HDFC. I made a similar EMI transaction with HDFC on 4th December,2024 and fore-closed the EMI via MyCards as soon as it got converted. Despite what everyone said, HDFC did not charge foreclosure fee (even though it was mentioned in MyCards app) and even refunded the processing fee (without GST). What more, contrary to the popular belief the instant discount on EMI wasn't reversed till now as well.

I don't know if much has changed from then. I'm okay paying the processing and foreclosure fee for EMI cancellation. But if HDFC really does reverse the Rs.10,000 instant discount, it absolutely does not make any sense to cancel the EMI. Does HDFC really do this and Has anyone experienced this?

Playing with HDFC's emotions 🧐

 

[Amit_1]

Haven’t tried to cancel the emi from mycards, I tried cancelling the emi by cc executive, there were 3% + gst foreclosure charges, so dropped the idea as foreclosure charges weee equal to my emi interest.
Anyone else tried the emi cancellation from mycards

 

[Batman]

The T&C doc clearly states that all discount offered - be it EMI interest-offset discount or the extra discount for choosing EMI.

Do keep us updated on how it goes. I am looking to learn the same information as well.

 

[imdjay]

Haven’t tried to cancel the emi from mycards, I tried cancelling the emi by cc executive, there were 3% + gst foreclosure charges, so dropped the idea as foreclosure charges weee equal to my emi interest.
Anyone else tried the emi cancellation from mycards

This is per day. So on the txn of around 50k, it would be hardly 500rs.

 

[Amit_1]

This is per day. So on the txn of around 50k, it would be hardly 500rs.

For 50k amount, cancellation charges would be 1770. per day?

 

[curios_mind_huh]

This is per day. So on the txn of around 50k, it would be hardly 500rs.

Not per day. I had a similar situation with SBI. If your principal is 50k, you'll be charged 3.54% as preclosure charge on the 50k as a whole. Yes, even for a single day

 

[tharun]

Since interest and processing fee is what bank earns so it's ok to charge 3 to 5 percent on the interest amount to be paid not the whole amount. 😢

 

[curios_mind_huh]

Since interest and processing fee is what bank earns so it's ok to charge 3 to 5 percent on the interest amount to be paid not the whole amount. 😢

Well, the bank gives out what is essentially a 16% discount upfront in case of no-cost EMI. How's charging 4% as pre-closure charge a problem?

 

[tharun]

Well, the bank gives out what is essentially a 16% discount upfront in case of no-cost EMI. How's charging 4% as pre-closure charge a problem?

If you consider it as problem then it's a problem if not then no.
Now take a different scenario for a second.
During non sales times some times we only get no cost emi discount. Many of the ppl have the money and don't want it to be emi just made it as emi so that it would be given at extra discount upfront