Compare the promotion as a mini-loan: amount transferred, upfront fee, promotional rate, promotion duration, required minimum payments, rate after the promotion, treatment of new purchases and consequences of a missed payment.
Calculate the full promotion cost
| Input | Value |
|---|---|
| Balance transferred | ₹A |
| Transfer/processing fee + applicable tax | ₹B |
| Promotional finance charges | ₹C |
| Amount you can repay during promo | ₹D/month |
| Balance remaining at promo end | Calculate explicitly |
| Post-promo rate | Use live issuer terms |
The key question: will the debt be gone before the promotion ends?
If not, model the remaining balance at the ordinary post-promotion rate. A 0% or low-rate period can still be expensive when a large balance rolls into a high regular rate.
Check how new purchases are treated
Do not assume the transferred balance and new retail spending share the same rate or interest-free treatment. Read the issuer’s allocation-of-payments and purchase terms. The RBI credit-card FAQ provides baseline billing/interest protections, while the commercial promotion is governed by the issuer’s live terms.
Set an automatic payoff schedule
Divide the total amount you want cleared—including transfer fee—by the number of safe payment months before promotion expiry, leaving a one-month buffer. If that required payment is unaffordable, the promotion is not a solution; it is a delay.
Do not transfer debt to create fresh spending room
If you transfer ₹1 lakh and then rebuild ₹1 lakh on the old card, household debt doubles. Freeze discretionary card use until the transferred balance is on a credible payoff path.
Decision rule: accept the transfer only when the all-in promotional cost is lower and the repayment schedule clears the balance before expensive post-promo pricing becomes relevant.