Credit card EMI allows an eligible purchase or outstanding amount to be converted into scheduled instalments, subject to the card issuer’s terms.
How Credit Card EMI Works
Depending on the issuer, you may be offered EMI at checkout or may be able to convert an eligible transaction after purchase. The issuer then bills you according to the EMI schedule.
What Does It Cost?
Costs can include an interest rate or processing fee, applicable taxes and other charges. Some promotional offers may advertise low or zero interest but still have processing fees or other conditions.
Check the Total Cost
Don’t compare EMI plans only by monthly payment. Add the instalments and applicable fees to understand the total amount you will pay.
When Can EMI Make Sense?
It can be useful for a necessary large purchase when the instalment comfortably fits your budget and the total cost is acceptable.
When Should You Avoid It?
Avoid using EMI simply to make an unaffordable purchase look affordable. Repeated EMI commitments can reduce monthly cash-flow flexibility.
FAQ
Does EMI reduce the purchase price?
No. EMI changes the repayment structure; interest and fees may increase the total cost.
Can every purchase be converted to EMI?
No. Eligibility depends on the issuer, transaction and applicable terms.
Disclaimer: EMI offers, fees, rates and eligibility vary by issuer.