In the world of credit cards, there’s a remarkable benefit that stands out—being able to make large purchases and conveniently pay them off through easy EMIs. In the past, many of us have refrained from buying certain items due to their high price tags. However, EMIs have made it easier for us to acquire the things we desire.
While American Express does not permit charge cardholders to convert their spends into EMIs, it does provide this option to both basic and supplementary cardholders. If you hold a basic or supplementary American Express card, you can convert spends above Rs. 5000 and Amazon spends above Rs. 3000 into EMIs. Now, American Express is introducing some changes to the EMI processing fee, foreclosure request, and interest rate on select tenures. These changes will come into effect on August 10th, 2023.
Let’s delve into the details of the modifications in EMI charges brought forth by American Express.
Changes to EMI Charges on Amex Credit Cards
As an American Express credit cardholder, you have the flexibility to convert spends above Rs. 5000 into EMIs with varying tenures. American Express has recently announced changes to the EMI charges that will be implemented from August 10th, 2023. Take note of the following alterations: A processing fee of Rs. 199 plus taxes will be applicable to point-of-sale EMI transactions. For EMI tenures of 18 and 24 months, a 15% interest rate will be imposed on point-of-sale EMI transactions. Any early payment or EMI foreclosure will incur a 3% fee based on the outstanding balance, in addition to taxes. This foreclosure fee will apply to EMIs taken after August 10th, 2023.
If you intend to convert your Amex credit card spends into EMIs, it is crucial to keep these changes in mind.
EMI Charges by Other Banks
Different banks have varying fees and charges when it comes to EMI conversions for credit cards. The table below highlights the fees associated with EMIs offered by leading card issuers in India.
| Card Issuer | Interest Rate | Processing Fee | Pre-closure Fees |
|---|---|---|---|
| HDFC Bank | 15% p.a. onwards | 1% of the total amount, or minimum Rs. 150 | 3% of the outstanding balance amount |
| Axis Bank | 13% p.a. onwards | 1.5% of the total amount, or minimum Rs. 150 | 3% of the outstanding balance amount |
| SBI | 14% p.a. onwards | 2% of the total amount, or minimum Rs. 99 | 3% of the outstanding balance amount |
| ICICI Bank | 13% p.a. onwards | 2% of the total amount | – |
| Citibank | 13% p.a. onwards | 2.5% of the total amount, or minimum Rs. 200 | 3% of the outstanding balance amount |
| Bank of Baroda | 13% p.a. onwards | 2% of the total amount, or minimum Rs. 100 | 3% of the outstanding balance amount |
Bottom Line
American Express offers an impressive range of credit cards and is a prominent card issuer in the Indian market. With Amex credit cards, you have the option to convert your spends into EMIs with flexible tenures. If you are an Amex credit cardholder, it is essential to familiarize yourself with the aforementioned changes concerning EMI charges.
These changes will take effect on August 10th, 2023. Therefore, it is crucial to consider these modifications for any future EMI conversions. We would love to hear your thoughts on the changes made by American Express. Please feel free to share your opinions in the comments section below.