Archive · 5 Oct 2026
Closing a Credit Card May Leave EMIs and Other Obligations
Closing a credit card does not make any unpaid instalments disappear.
You may still need to pay them on schedule, or the bank may ask for the remaining amount at once.
Some lenders may charge an extra fee if you pay off the instalments early.
Reward points might disappear when the card closes, so check whether you can use them first.
Refunds that arrive later may need help from the card issuer to reach your bank account.
Move subscriptions and other automatic payments to another payment method.
Keep the final bill and proof that the card was closed.
The exact rules depend on the lender and the EMI plan.
Closing a credit card does not automatically cancel outstanding EMIs.
Depending on the lender, instalments may continue through an eNACH mandate or the remaining principal may become immediately due.
A foreclosure charge of around 3 per cent plus GST may apply, but charges and procedures vary by lender and EMI scheme.
Unused reward points may expire immediately or remain redeemable for a limited period after closure.
Cardholders are advised to check refunds, disputes and recurring payments, and retain the final statement and closure confirmation.
- Who
- Credit-card holders with active EMIs, unused reward points, pending refunds or recurring payments.
- What
- Considerations and possible consequences when closing a credit card.
- When
- Before submitting a credit-card closure request.
- Where
- Mumbai, as stated in the report.
- Why
- To avoid missed instalment payments, lost rewards, refund complications and disrupted recurring payments.
Possible outcomes
What determines the outcome
Repaying active EMIs
Possible outcomes
Instalments may continue after closure through an eNACH auto-debit mandate.
What determines the outcome
The remaining principal may instead be billed immediately, depending on the lender and EMI scheme.
Reward points after closure
Possible outcomes
Some programmes allow a limited period to redeem unused points.
What determines the outcome
Other programmes may make unused points expire immediately.
- Active EMIs
- Remain payable after card closure; the repayment method depends on the lender.
- Possible repayment method
- An eNACH auto-debit mandate linked to the customer’s bank account.
- Possible immediate bill
- The remaining principal may be billed immediately.
- Possible foreclosure charge
- Around 3 per cent plus GST; actual terms vary.
- Reward points
- May expire immediately or remain redeemable for a limited period after closure.
- After-closure refunds
- May require coordination with the issuer to transfer the money to a bank account.
- Records to retain
- The last statement and card-closure confirmation.