Be it your new iPhone purchase or a high value transaction, Credit card EMI options comes handy to make your wish come true. Considering the high EMI interest rates in the market, I never suggest anyone to get into the Credit Card EMI trap in life. But when the rates are too low, it just makes sense to go with it, at times.
American Express EMI Offers
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Interest Rates on Other Credit Cards
Two years back HDFC Credit cards used to provide one of the lowest interest Rates in the industry on EMI conversions, as good as 12% and even I made my dad avail them once. But at present HDFC charges one of the highest EMI ROI’s, as bad as 15% or even 17% to start with for 6 months.
Interest Rates on Amex Credit Cards
That said, Amex currently has the lowest interests on EMI (12% p.a.) with attractive options like 0% processing fee and 0% foreclosure charges. Here are different EMI options available with American Express credit cards and the respective benefits.
EMI Options on American Express Cards
1. Through Merchant
Merchant offers are the online & offline offers that specific merchant runs on Amex cards. These are the offers that you see on Flipkart/online, or Apple/Samsung store offline.
- Interest: 12% p.a.
- Processign Fee: 0%
- Foreclosure: 0%
- EMI Tenure: Depends on merchant
2. Through OTP Page (Amex Safekey)
When you’re doing an online transaction on any website, you can choose the EMI option while you’re on the OTP page. Below rate is applicable for the same.
- Interest: 12% p.a.
- Processign Fee: 0%
- Foreclosure: 0%
- EMI Tenure: 3,6,9,12 months
3. Through Customer Care
If you’ve decided to convert the transactions to EMI after actually making the transaction either with merchant/offline/online, you can still do so by calling Amex Customer care. Below are the rates for the same.
- Interest: 14% p.a.
- Processing Fee: 2% of txn amount
- Foreclosure: 0%
- EMI Tenure: 6,12 months
Note: Min. Transaction size for EMI conversion is 5000 INR and you can avail maximum of 6 EMI’s at any point of time. Jewellery purchases are prohibited for EMI conversions.
So, if you’re doing an online transaction, its better to convert during the OTP verification page as Amex has full control on whats being given and for offline transactions, You get better rate only when you convert it while swiping. Even if you choose to do so via customer care, 14% is quite decent compared to other banks.
Bottomline
American Express Credit cards does have attractive interest rates on EMI conversions in the market now. The offer might keep changing but I see them running since past ~1 Year, so the current numbers might not change in near future.
The most important advantage I see here is the 0% foreclosure charges, while most other cards charge about 2% to 3%. This not only gives a decent amount of savings but also flexibility to close the EMI anytime.
If you’re looking for a best card from American express just for EMI alone, you can Apply Amex MRCC Card (review here). And not to mention, you can get it as lifetime free from time to time (do check out airport offers). Even if you’re unable to get it LTF, Amex has now come up with a new offer, wherein you can get the renewal charges waived on Rs.1.5L annual spend.
Have you ever availed EMI on Amex or on any other bank cards? Feel free to share your experiences in comments below.
Could you please let us know what kind of offers are provided in airport sales?
If you’re new to Amex, you may get LTF or FYF. It differs from time to time.
There still will be GST of 18% on the EMI amount?
Its usually 18% On interest part of EMI, included within EMI amount itself.
Dear Sid
Please suggest any hack to get amex cards as they are not issuing cards in my city Lucknow as yet.
Thanks.
You need address (office/residence) in nearby issuing city, can be your relative’s address. During verification you got to be there, else it might get rejected.
YES First Credit Cards also have similar offer of 12% with no additional charges.
They increased it recently i believe. Also foreclosure charges applicable.
Is the EMI conversion at the OTP page option available for all transactions and all merchants with value greater than 5k?
Yes, I’ve seen it with all merchants.
I think No Cost EMI offer by Flipkart and Amazon is Good. This comes with no interest (here interest is instant discount).
Only GST you need pay on interest.
Yes, its the best whenever available.
I tried to renew my mother’s Health Insurance through STAR Health.
There is an option to pay through EMI but AMEX was not there.
The payment by credit card showed AMEX card but while initiating the safe key option I could not locate the EMI mode. The premium amount is more than 5000 p.a.
Hello Siddhart sir,
Recently I have applied for YFP card and I got the card with 30K limit only on card to card basis. Having 3 lakh limit on my regalia.
I check my cibil and came to know that there are 2 yesbank enquires made by yesbank for 1L but I have applied only once.
Can you shed some light on this.
It usually happens when the application is put on hold and reprocessed after a while.
“Even if you’re unable to get it LTF, Amex has now come up with a new offer, wherein you can get the renewal charges waived on Rs.1.5L annual spend”
I could no where see this offer anywhere in their page. Pls help.
Hi siddharth,
Please review SBI Prime Pro credit card.
Actually I have it but no information is getting about this card’s benifits and charges…