Federal Bank Credit Card EMI - Terms and Conditions

These Terms and Conditions (Terms) apply to EMI Facility availed on Federal Bank Credit Cards. By availing EMI facility on Federal Bank Credit Card, it shall be deemed that Customer/Cardholder/Card member have accepted the below terms and conditions.

1. Definitions and Interpretation

2. Eligibility for EMI Facility

3. Interest rates Applicable

4. Billing and Prepayment

5. Schedule of Repayment

6. Cancellation of EMI facility

7. Circumstances for Cancelation/Foreclosure

8. Proceedings of Cancellation/foreclosure

9. Consent

 

1. Definitions and Interpretation

1.1 “Card member/Cardholder” means an individual who has been issued with any card variant of Federal Bank Credit card.
1.2. “Customer Care” refers to customer service and support systems provided by Federal Bank.
1.3. “Minimum Amount Due” or “MAD” means the amount mentioned in the Federal Bank Credit Card statement, which is the minimum payment a Card member must make by the payment due date to keep the card account in good standing.
1.4. “Total Amount Due” or “TAD” means the amount mentioned in the Federal Bank Credit Card statement, which is the total amount due for payment when the statement is generated.
1.5. “Equated Monthly Instalment (EMI)” shall mean facility wherein purchase(s) are converted into instalments at a rate as communicated at the time of availing the EMI. EMI debited would include the Principal + Interest + applicable Goods & Services Tax (GST).

These Terms are to be read in conjunction with, and not in derogation of, the Federal Bank Credit Card Most Important Terms and Conditions (“MITC”) as well as the Federal Bank Credit Card Terms and Conditions (“T&C”)and nothing contained herein shall prejudice or affect the terms and conditions of the MITC and the T&C. Unless otherwise specified, the capitalized words and expressions used herein shall have the same meaning assigned to them in the T&C and MITC.

 

2. Eligibility for EMI Facility

2.1 Federal Bank reserves the right to decide the eligibility of the Cardholder for extending EMI Facility, as per internal policy and guidelines.
2.2. Card members can convert settled and unbilled retail purchases from Rs.2,500/- (Two Thousand Five Hundred) to a maximum Rs. 7,50,000/- (Seven Lakh Fifty Thousand) into EMI.
2.3. Federal Bank reserves its absolute right and discretion to approve or decline any request for EMI. It is further clarified that transactions under certain merchant categories especially gold, jewellery, ATM transactions, cash transfer, fuel, etc. as well as transactions which are expressly prohibited under the law/regulations for conversion into EMI, cannot be converted into EMI.
2.4. When you make a purchase under EMI, the available Credit Limit on your Federal Bank Credit Card account shall be reduced by an amount equal to the principal amount but your account statement for any month will reflect only the instalment amount due from you for that EMI transaction during that month.
2.5. Only single and completed transaction amounts are eligible for the EMI and any requests for part of the charge or clubbing of multiple charges into EMI are not allowed.
2.6. Existing outstanding balances from transactions already converted into EMI, cannot be converted into EMI.
2.7. Card members can, at any point in time, avail any number of transactions for conversion into EMI, subject to availability of Credit Limit and above conditions.

 

 

3. Interest rates Applicable

3.1. The interest charges on EMI transactions are charged at a rate communicated to the Card member at the time of availing of the facility and on a monthly reducing balance. We reserve the right to change the offered EMI interest rate from time to time and furthermore, reserve the right to simultaneously offer different EMI interest rates for different transactions across different tenures.

3.2. Any change in the EMI interest rate shall not affect EMI transactions already getting billed on the card prior to the effective date of that change.
3.3. Once the EMI tenure has been chosen by the Card member, it cannot be changed.
3.4. For transactions converted into EMI, the interest rate would be communicated at the time of conversion. The interest rates range from13% to 15% per annum with monthly rests (based on the tenure availed) + GST. The applicable rate would be available in the Statement of Charges.

Tenure (in Months)

Interest Rate (p.a.)

3

13%

6

13%

9

14%

12

14%

18

15%

24

15%

 

Additionally, there would be a processing fee of 2.5% or Rs. 200, whichever is higher, on the transaction amount which would be applicable. A foreclosure charge of 2% +GST on the remaining principal as applicable will be charged if closed before the chosen tenure.


3.5. GST will be applicable on processing fee, interest and foreclosure charges and is subject to change as per relevant regulations of the Government of India.
3.6. The Credit Limit on the Credit Card shall be blocked to the extent of the full transaction amount. The Credit Limit will be released as and when the EMI is billed and paid for in subsequent months.
3.7. Fees and charges once posted to the Card member’s account during the EMI conversion and EMI foreclosure shall not be waived off for the Card member in any scenario.

 

4. Billing and Prepayment

4.1. The interest component for the first instalment shall be computed from the EMI booking date. The interest component for the first EMI shall be for 30 days irrespective of the loan booking date/transaction conversion date. For ex. If the transaction conversion to EMI is done on 6th of Jan’22 for INR 10,000 at 14% for 6 month & the billing date is 21th Jan’22. EMI to be charged on the billing date will be INR 1735.38 with interest component of INR 116.67 (interest for 30 days instead of 15 days). For all the instalments, the interest shall be computed on a monthly basis and the instalment shall be added to the MAD on the date of each monthly bill.

4.2. After processing Card member’s request for conversion of transactions into EMI, the amount shall be billed on the first statement for the Federal Bank Credit Card that is generated post the conversion of the transaction into EMI.

4.3. The instalment amount for each EMI shall be paid in full each month, notwithstanding the minimum monthly payment requirements stipulated in the MITC and T&C. The aggregate of all EMI instalment amounts for any billing period will be added to the minimum monthly payment calculated for all other transactions or outstanding balances for that billing period. The Bank reserves the right to charge default interest on any unpaid or partially paid instalment amount.

4.4. Any amount paid in excess of Card member’s full outstanding balance reflected in current statement will result in a credit balance lying in Card member’s card account and will not be applied to unbilled EMI instalment amounts.

4.5. Notwithstanding anything stated elsewhere, Federal Bank at its sole discretion reserves the right to off-set any credit balance on the card account against any EMI that is due.

4.6. In case of full refund from the merchant, the Card member should contact our Customer Care team and place a request for EMI cancellation.

4.7. Federal Bank reserves the right to levy late payment fees and default interest (As per applicable APR + GST) on any unpaid or partially paid instalment amount.

 

 

5. Schedule of Repayment

5.1. While creating the schedule, 30 days (year of 360 days) will be considered for a month’s interest and based on the calculation, the entire schedule will be created.
 

 

6. Cancellation of EMI facility

The Card Member may cancel the facility by calling Federal Bank Customer Care, at least 4 workings days prior to the first EMI bill generation date. In case of cancellation, the original transaction amount which was converted into EMI shall be debited back to the customer account and all charges relating to such EMI conversion shall be reversed, basis approval.

 

 

7. Circumstances for Cancelation/Foreclosure

The Loan/EMI Facility provided by the Bank shall stand cancelled automatically upon occurrence of any of the following events:

a. You fail to repay the Loan/EMI Facility in the manner specified in the terms and conditions notified by the Bank.

b. The card member's commission of a breach of any of the terms and conditions along with covenants herein contained or having made any misrepresentation to Federal Bank.

c. The card member is declared as an insolvent.

d. Any proceedings for misconduct having been initiated against the card member.

e. In the event of your Card coming under block status: Your card can come under block status on account of various reasons, including but not limited to, the Card being reported as lost or stolen.

f. The card member’s failure to furnish any information or documents that may be required by Federal Bank.

g. The card member’s entering into any composition with his/her creditors.

h. The card member’s defaulting on any of the terms and conditions of any other loan or facility provided by Federal Bank to the card member.

i. The existence of any other circumstances which, in the sole opinion of Federal Bank, jeopardise Federal Bank's interest.

j. CC EMI (Credit Card EMI) is valid only on Credit cards in 'regular' status. It is not valid on cards on which a block is placed due to Payment overdue, Lost Card reported, Upgrade in progress etc. EMI transactions done on such non-regular status Credit Cards shall be debited to the card account of cardholder in full and become payable in subsequent billing cycle.

k. In the event of cardholder becoming delinquent, the EMI shall be terminated and the principal outstanding and the interest for the entire tenure as opted by the cardholder, shall be debited to the credit card account of the Cardholder and reflect in the subsequent monthly statement. Federal Bank shall be entitled to demand immediate repayment of such consolidated outstanding amounts including principal, interest and applicable charges.

l. In the event the Credit Card account remains overdue for more than Thirty (30) days (SMA 1 due to non-payment of Minimum Amount Due), the EMI shall be foreclosed with the principal outstanding along with the upcoming month’s interest (only if the EMI has been posted to Card member’s account), billed to the Credit Card account. Federal Bank shall be entitled to demand immediate repayment of such outstanding amounts as deemed appropriate.

m. In case of card renewal/upgrade, if the new card is out for delivery and undelivered which leads to deactivation/cancellation, the EMI account will be closed and the Card member will be liable to pay the complete outstanding as per the statement with the foreclosure and associated charges.

 

 

8. Proceedings of Cancellation/foreclosure

a) Card members may foreclose the aggregate of all unbilled principal in full only by opting for foreclosure by calling Customer Care. In this case, a foreclosure charge of 2% +GST on the remaining principal, as applicable, will be charged if closed before the chosen tenure.

b) Upon foreclosure, the entire outstanding amount will be billed to the Card member’s account statement and will be included in the Minimum Amount Due (MAD). If the Card member has carried forward balance at the time of foreclosure, the entire amount will attract applicable interest rate as specified in the monthly Statement of Account, else the amount will be due for payment as per billing cycle.

c) Upon foreclosure, the EMI shall be terminated and the principal outstanding and the interest for the entire tenure as opted by the cardholder, shall be debited to the credit card account of the Cardholder and reflect in the subsequent monthly statement. Federal Bank shall be entitled to demand immediate repayment of such consolidated outstanding amounts including principal, interest and applicable charges. If the Card member chooses not to pay the entire amount and opts to carry forward a balance, the entire amount will attract applicable interest rate as per T&C and MITC.


 

9. Consent

a) EMI Facility provided by the Bank to the card member will be subject to the terms and conditions notified by the Bank, apart from the terms contained in these presents. By availing the Loan/EMI Facility, it shall be deemed that you have accepted the terms and conditions notified by the Bank in this connection and these presents. You shall repay the Loan/EMI Facility in the manner specified in the terms and conditions notified by the Bank.

b) The customer hereby consents to authorize Federal Bank to share certain customer information which is essential to extend the EMI facility, with the recognized payment aggregators/partners/platforms.

c) The customer consents to allow Federal Bank to register auto recovery of loan EMI from the operative account of the borrower/card holder.

d) The card member has understood Federal Bank's method of calculating EMIs payable.

e) The card member has understood that by availing of the facility, the card member shall not be, unless otherwise stated by Federal Bank in writing, eligible for any reward points whatsoever, whether awarded under the Federal Bank Reward Points Scheme or any other reward points scheme on the card that may be announced by Federal Bank from time to time.

f) The card member shall renew the card forthwith in the event the period of the card expires during the tenure of the facility. In the event of failure of the card member to renew the card as stated above, Federal Bank shall be entitled to call upon the card member to forthwith repay the facility without prejudice to all rights and remedies against the card member.

g) The card member shall notify Federal Bank, in writing, of any change in the card member's address within a week of such change.

h) The card member is deemed to have accepted these terms and conditions upon the card member having requested for the facility.

i) Repayment by the card member of the entire amount of the facility to Federal Bank shall release the credit limit and/or cash limit for which the card member is eligible by virtue of holding the card.

j) The card member shall make payment of all taxes, duties, levies (including Goods and Services tax) in connection with the facility.