Today, EMI cards are becoming an increasingly popular tool for paying for purchases. As the name suggests, Equated Monthly Installments or EMI cards make borrowing money to fund your purchases like travel, shopping, entertainment, etc., more seamless.

Are there any charges associated with EMI Card?

To facilitate transactions on your EMI cards, you may have to bear certain charges. These charges mainly include the joining fees, issuance fees, any add-on card fees, processing fees, or even replacement fees. There may be other charges as well depending upon the usage of the cardholder like any statement charges, annual charges, rejection fees, or any other interest chargeable on the card.

What are the different types of charges involved?

Here’s a detailed list of Bajaj Finserv EMI card charges that a cardholder can expect to pay as mentioned below:

·      EMI card fees: This is a one-time joining charge to be paid when one signs up for a card as well as to activate the card to start using it to make purchases.

·      Annual charges: No annual fee is charged for the first year. The annual fee or the renewal fee is applicable from the 2nd year onwards and is deducted in the first month of the respective year.

·      Processing charges: These charges are usually nominal in nature and the charges vary depending on the type of purchases, the schemes available, and the dealer involved.

·      Registration charges: Depending on the type of card, customers have to pay a one-time registration fee by submitting their bank information and OTP verification.

·      Rejection charges: In case of an earlier rejection of an e-mandate by a bank, you have to register a fresh mandate within 30 days. Failure to do so will result in rejection charges to be borne by the applicant.

·      Charges on add-on card: If you apply for an add-on card apart from your existing EMI card, you will be charged a nominal fee depending on the type of card.

·      Convenience charges: These charges are applicable to allow the merchant to convert the purchase amounts of the cardholder into smaller payable EMIs. It is unlike a surcharge fee which is an additional charge, tax, or payment that is added to the cost of goods or services.

·      Penal Interest charges: This type of charge is typically levied by the bank or financial institution if the cardholder fails to pay the EMIs as per the repayment schedule of the purchase.

·      Document charges: To get documents like the account statement, repayment schedule, no dues certificate, application documents, foreclosure letter, interest certificate, and more, the cardholder can download them free of charge from the company portal. But to get the hard copies of the same documents, they would have to pay a nominal charge of Rs 50 and get them at the branch.

·      Bounce charges: Some banks levy the bounce charges or the ECS (Electronic Clearance Service) charge on the EMI card every time the cardholder's EMI payments fail to go through. This charge is in addition to higher interest and late payment fees.

Are there any foreclosure charges?
There are no foreclosure fees that will be charged if you want to foreclose a running EMI. The cardholder will, however, have to pay the EMI of the current month as well as any outstanding dues.

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