Cash on EMI - Terms and Conditions

  1. The Cash-on-EMI facility is brought to you by The Hongkong and Shanghai Banking Corporation Limited, India (HSBC) and any participation is voluntary. This offer is applicable to only selected HSBC Credit Cardholders (hereinafter referred to as the "Cardholder").
  2. The Cash-on-EMI facility allows the Cardholder to avail the Cash Advance facility on his/her HSBC credit card ("Card") and repay the same in Equated Monthly Installments (EMI). This facility will be available till further notice. Availing / use of the Cash-on-EMI facility will be deemed to be unconditional acceptance of the terms and conditions and the Cardholder will be bound by the same.
  3. The Cash-on-EMI amount will be provided in the form of an Indian Rupee Cashier Order issued or by transfer of funds via National Electronic Funds Transfer1 (NEFT) facility by debit to the Cardholder's account. The Cashier Order may be payable to self or to a third party.
  4. Cashier Orders issued for Cash on EMI are valid for the period mentioned on the Cashier Order. If the Cashier Order issued, is not presented for encashment within the said period, the same will be cancelled.
  5. Cardholders also have an option to receive the Cash-on-EMI amount credit to their resident savings / current account with HSBC by transfer of funds via NEFT to other bank accounts. In such cases, the recipient account should belong to the Cardholder as a Resident Individual or Resident Joint (either or survivor) account. It is the sole responsibility of the Cardholder to provide an accurate and valid HSBC/Other bank account number accordingly.
  6. It is stipulated that Cash-on-EMI processed through NEFT cannot be reversed once the request has been processed and the amount has been credited to the other bank account.by use of this facility. The Cardholder using NEFT facility accordingly confirms and agrees to this condition while opting for and choosing NEFT facility for availing benefits under Cash-on-EMI.
  7. The proceeds of the Cash-on-EMI facility cannot however be used for the purpose of investment in equity shares, convertible bonds and debentures and units of equity oriented mutual funds.
  8. The amount of cash advance disbursed will be at the sole discretion of HSBC. The minimum amount eligible for the Cash-on-EMI facility will be Rs. 5000.
  9. The Cashier Order will be dispatched to the Cardholder's mailing address on record. HSBC shall not be liable for any direct or consequential loss or damage suffered by the Cardholder on account of any delay in receipt of the Cashier Order by the Cardholder.
  10. The Cash-on-EMI tenure applicable to your loan is as mentioned on the payment advise sent with the Cashier order or the email/SMS sent in case of NEFT transfer
  11. A processing fee of 2% (subject to minimum Rs.200) will be applicable on the amount of each cash advance transaction availed under the Cash-on-EMI facility. This will reflect along with the first EMI amount on the Card statement.

    The annual rate of interest applicable to your loan is as mentioned on the payment advise sent with the Cashier order or the email/SMS sent in case of NEFT.
  12. Pre-payment charges on foreclosure of the loan will apply at the rate of 3% on the outstanding principal amount of the loan, subject to a minimum of Rs. 250
  13. The credit limit on the Card account will be reduced to the extent of the principal amount of the Cash-on-EMI availed and will be released as and when EMIs are billed and paid for in the subsequent months.
  14. The first EMI will be reflected in Card statement generated on the subsequent billing date. The subsequent EMI amount will be billed to the Card account every month on the same date as the first EMI date.
  15. Minimum Amount Due :The Cash on EMI due for the month is included as part of the minimum amount due appearing in the Cardholder's monthly statement. The minimum amount due appearing on the Cardholder's monthly statement is calculated as a percentage of the total outstanding retail balance + any other EMI due + Monthly EMI due on Cash on EMI. Non payment of the entire total payment due on the Card by the payment due date will result in the levy of standard credit card interest rates on the balance outstanding. If only the Minimum Amount Due (as defined above) is paid, the standard credit card interest rates will be levied on the balance outstanding. However, if such partial payments do not cover the amount of EMI for the month, standard finance charges (including late payment fee) will also be levied.
    • Illustration:
      12-month Cash advance availed under Cash on EMI facility = Rs. 10750
      Cash-on-EMI installment for the month = Rs. 1000
      Other Outstanding balances = Rs. 2000
      Total payment due for the month = Rs. 3000
      Minimum Payment due = (5% x Rs. 2000) + Rs. 1000 = Rs. 1100
    • Scenario I:
      • Amount paid = Rs. 1200
      • Amount Outstanding = Total Payment Due - Amount paid = Rs. 1800
        Finance charges at the applicable rate will apply on Rs. 1800 in the next billing cycle
    • Scenario II:
      Amount paid = Rs. 3000
      Amount rolled over = 0
      No finance charges will apply.
  16. Kindly note that according to the new payment hierarchy, the Cardholders payments will first be apportioned to fees and charges, outstanding on BT, cash advances and purchase transactions in that order. Also note that the Cash on EMI installments will be treated as purchase outstanding for the purpose of payment apportionment. EMI payable towards Cash on EMI will be set off first before any payment is apportioned towards other outstanding. Please note incase the amount paid does not clear the EMI amount (partly or fully), the remaining EMI amount will be added in the next month's Minimum Amount Due along with the standard interest charged on the said amount.
  17. If the Cardholder defaults on payment of any of the EMIs, HSBC reserves the right to foreclose the Cash-on-EMI outstanding and debit the entire outstanding amount.
  18. Payments made in excess of the Card outstanding will not automatically be adjusted against unbilled EMIs and will hence not result in prepayment of the Cash on EMI facility. To pre-close the Cash on EMI facility, the Cardholders should contact HSBC PhoneBanking.
  19. If the Cardholder closes his Card before all applicable EMIs are posted to the Card account, the outstanding Cash-on-EMI amount will be debited to the Card account as one consolidated amount.
  20. Requests for change in Card franchisee (VISA/ MasterCard) shall not be entertained during the tenure of the Cash-on-EMI facility.
  21. No request for changes in the billing cycle shall be entertained during the tenure of the Cash-on-EMI facility.
  22. HSBC reserves the absolute right to add, alter, modify, change or vary all or any of these Terms and Conditions or to replace, wholly or in part, this scheme by another scheme, whether similar to this scheme or not, or to withdraw it altogether, at any time without any prior notice. HSBC may at its discretion discontinue the Cash-on-EMI facility at any time during the pendency of the facility, foreclose the loan and debit the entire outstanding amount to the Credit Card.
  23. Cardholders will not hold HSBC responsible for or liable for, any actions, claims, demands, losses, damages, costs, charges, and expenses that a Cardholder may suffer, sustain or incur by availing the Cash-on-EMI facility.
  24. All disputes arising from the Cash-on-EMI facility shall be subject to the exclusive jurisdiction of the courts of Mumbai.
  25. The terms of this Offer shall be in addition to and not in derogation of the terms and conditions contained in the credit card services guide. This Offer is by way of a special facility for select Cardholders and nothing contained herein shall prejudice or affect the terms and conditions of the credit card services guide. The words and expressions used herein shall have the same meaning as in the credit card services guide.

Privacy and Security   |   Terms of Use   |   Hyperlink Policy
© Copyright 2012. The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India). Incorporated in Hong Kong SAR with limited liability. All rights reserved.