Know About the Cash On EMI FacilityCredit Card | June 25, 2013 at 12:46 am
You may have a sound financial background and credibility and high credit ratings, but at times when you are faced with a financial problem, and loans are scarce and difficult to arrange, you have the option to take advantage of CASH ON EMI facility on your credit card.
The Cash on EMI, allows the credit card holder to take a cash advance on his credit card and repay the same in equated monthly installments, and the bank will charge interest for the same.
However under this scheme, the funds can only be used for your personal use and cannot be utilized for any investment purposes, or in equity shares, debentures, convertible bonds or units.
The Cash on EMI facility is available for specified period of time according to the terms and conditions and the same facility can be discontinued by foreclosure of the loan availed.
During the tenure of this Cash on EMI loan, the credit limit of the card older will be reduced to the extent of the principal amount of the Cash on EMI availed, and the limit will be normalized once the outstanding amount has been paid to the bank.
The EMI on this facility will be reflected in the bank statement every month in the credit card statement and the Cash on EMI due for the month is included in the Minimum payment due amount.
Different rates of interest are applicable for credit card transactions and Cash on EMI schemes,
However, the bankers are very strict with the payments on Cash On EMI LOANS, and in case of a default on any payment, the bankers have the right to foreclose the Cash on EMI outstanding account and debit the entire outstanding amount to you.