Buying something expensive but don’t want to pay the full amount upfront? Credit Card EMI lets you split big purchases into smaller, manageable payments! Here’s everything you need to know.
1. What is EMI?
EMI (Equated Monthly Instalment) is a fixed monthly payment made to repay a loan over a period. It covers both the principal and interest, making budgeting easier.
2. How Does Credit Card EMI Work?
- Convert a purchase into EMI at checkout, via your bank’s app, or customer service.
- Choose the tenure (3, 6, 9, 12 months, etc.).
- Pay monthly instalments until the amount is fully paid.
- Interest & processing fees may apply.
3. Key Factors to Consider Before Opting for EMI
- Interest Rate – Compare across banks for the best deal.
- Processing Fees – Some banks charge extra fees for EMI conversion.
- Tenure Options – Longer tenures mean lower EMIs but higher total interest.
- Credit Limit Impact – The EMI amount gets deducted from your credit limit.
4. How to Convert a Credit Card Payment to EMI?
- At checkout, check if EMI is available.
- Convert an existing transaction via your bank’s mobile app or customer service.
- Some retailers offer direct EMI options while shopping.
- EMI details & interest will be reflected in your monthly statement.
- Bank approval is required for EMI conversion.
5. Why Use Credit Card EMI?
- Makes expensive purchases affordable.
- Reduces financial strain with structured payments.
- Can help with cash flow management.
Always check the total cost, including interest & fees, before opting for EMI. Use credit cards responsibly to avoid unnecessary debt.