More shoppers are turning to credit cards to pay for online purchases, and EMI options have become a popular way to manage these expenses. But before choosing this route, it’s important to understand how credit card EMIs work and what they really mean for your finances.
WHAT IS A CREDIT CARD EMI?
A credit card EMI lets you break down a purchase into fixed monthly payments instead of paying the entire amount upfront. With repayment periods usually stretching from three to twenty-four months, it offers flexibility and reduces strain on your monthly budget.
These fixed instalments make it easier to plan your cash flow, though you may need to account for processing fees or interest depending on the issuer.
Some banks even offer no-cost EMIs during festive seasons. Many issuers also provide instant conversion options, either at checkout or through their mobile apps.
HOW EMI CONVERSION WORKS
Once you select EMI, the bank pays the merchant the full amount. You then repay the bank in instalments, which reduces your available credit limit until the EMI is completed.
Purchases above Rs 3,000–Rs 5,000 generally qualify for EMI conversion. Each month, the EMI amount is reflected in your credit card bill until the repayment period ends.
WHEN YOU SHOULD CHOOSE AN EMI
You may consider EMIs if you’re buying a high-value product, want predictable monthly payments, or find a genuine no-cost EMI offer.
However, avoid this option if the interest rate is too high or if the monthly instalment is difficult to manage.
Simply put, credit card EMIs can help you manage expensive purchases like electronics, clothing, or accessories without draining your savings. But it’s important to read the fine print, check all charges, and ensure the repayments fit comfortably within your income.
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