Credit cards make shopping easy, but large purchases can sometimes put pressure on your monthly budget. This is where the option to convert credit card purchases into EMI becomes extremely useful.
Credit Card EMI allows you to break a big expense into smaller monthly payments instead of paying the full amount at once. Whether you buy electronics, appliances, travel tickets, or furniture, EMI conversion helps manage cash flow better.
This guide explains how credit card EMI works, how to convert purchases into EMI, charges involved, and smart tips to use it wisely.
Credit Card EMI is a facility offered by banks that allows you to repay a purchase in monthly instalments over a fixed period.
Instead of paying the entire bill amount in one cycle, you pay a fixed amount every month that includes principal and interest.
This feature is especially useful for high-value purchases that you don’t want to pay in one go.
Merchant EMI
Merchant EMI is available at partner stores or online platforms.
Features include:
This option is common on e-commerce websites and electronic stores.
Post Purchase EMI Conversion
This option allows you to convert a completed transaction into EMI later.
Features include:
This option is useful when EMI was not selected during purchase.
To convert a purchase into EMI, certain conditions must be met.
Common eligibility requirements include:
Eligibility may vary depending on the bank and card type.
Through Bank Mobile App
Most banks allow EMI conversion directly from their mobile apps.
Steps usually include:
Once confirmed, the EMI reflects in your next statement.
Through Net Banking
You can also convert purchases through internet banking.
General process includes:
This method is convenient for desktop users.
Through Customer Care
If online options are not available, customer care can help.
You can:
This method is helpful for first-time users.
Banks usually offer flexible repayment periods.
Common tenure options include:
Longer tenures reduce monthly EMI but increase total interest paid.
Interest Charges
Most EMI conversions attract interest.
Important points:
Always check interest rate before confirming.
Processing Fee
Some banks charge a one-time processing fee.
This fee may be:
Not all cards charge processing fees.
GST on Charges
GST is applied on interest and processing fees as per regulations.
This increases the overall cost of EMI.
Credit card EMI offers several advantages.
Key benefits include:
For planned purchases, EMI can be a smart option.
Despite its benefits, EMI conversion also has limitations.
Some drawbacks include:
Understanding these drawbacks helps avoid mistakes.
When you convert a purchase into EMI:
This is important to remember if you use your card frequently.
Credit Card EMI can affect your credit score in both ways.
Positive impact if:
Negative impact if:
Timely repayment is crucial to maintain a healthy credit score.
To make the best use of EMI conversion, follow these tips:
Responsible usage prevents long-term debt.
Avoid EMI conversion when:
Using EMI unnecessarily can increase expenses.
Credit Card EMI is suitable for short-term needs, while personal loans are better for large long-term expenses.
Credit Card EMI advantages:
Personal loan advantages:
Choose based on your financial situation.
Converting credit card purchases into EMI is a powerful feature that makes big expenses manageable. When used wisely, it helps maintain cash flow and reduces financial stress.
However, interest and charges mean EMI should not be used casually. Always understand the total cost, choose the right tenure, and pay EMIs on time.
Smart usage of credit card EMI allows you to enjoy flexibility without damaging your financial health.