Axis Bank changes credit card EMI foreclosure interest, Oct 2026

Axis Bank credit card EMI plans booked from 20 October 2026 follow new foreclosure rules. Close the plan before the card's payment due date and the bank starts a pro-rated refund of EMI interest, with the GST on it. Close it after the due date but before the next EMI interest is billed and the bank charges pro-rated foreclosure interest on the outstanding principal. The foreclosure charge of 3% of outstanding principal or Rs 300, whichever is higher, is unchanged.

Plans booked before 20 October 2026 keep the old rule. Foreclosure interest runs from the date of the last billed EMI to the date of foreclosure. If the plan closes before initial interest is billed, it runs from the date of conversion.

A second refund applies to new plans. If the last billed EMI is fully paid before the due date, the bank starts a pro-rated refund of EMI interest, worked out on the principal part of that EMI. If that EMI is paid in several parts, the refund counts from the day it is fully paid.

Both changes appear in the Balance on EMI terms and the transaction EMI terms on the bank's card services page. The page says initial interest runs from the booking date to the due date of the first statement. Its example is Rs 1,00,000 at 18% a year for 29 days, which comes to Rs 1,450.

The page gives no worked example of a refund and no timeline for crediting it. It says only that the refund follows the bank's policies. We did not find a separate cardholder notice. An EMI cancelled within 7 days of booking carries no foreclosure charge, but the processing fee is not reversed.

The rules cover Axis EMI plans on its credit cards, not one card. See all Axis Bank credit cards and our guide to the real cost of a no cost EMI.