Wed. May 22nd, 2024

An EMI or equated monthly instalment is a fixed pre-decided payment amount which a borrower needs to pay to the lender on a monthly basis at a specified date. In EMI, both the interest amount and the part of the principal is paid off each month until the evaluated end of the period. The concept of EMI is not just limited to pay off various loans – personal or otherwise – but can also be used as a payment option in credit cards.

Payment on Credit Cards

When it comes to payments of credit cards card, one of the three options can be availed:

  • The simplest option would be to pay off the principal amount before the stipulated This would keep you from paying anything extra on the credit or loan money. However, this option is best to seek only if you happen to have full payment money.
  • The other option to go for is to pay a part of the amount along with the interest right away. The rest can be paid in the near future. But the bank may charge some additional amount for this service. The interest charge too may vary on the remaining sum of the outstanding payment.
  • When your outstanding amount of credit cards needs to be paid off one of the convenient methods is EMI on credit cards. The amount to be paid off on a credit card is evenly distributed in equated monthly instalments. When you go for a credit card apply option you can also look for various EMI options on credit cards.

EMI on Credit Cards

To avail EMI on credit cards, the credit card issuer generally specifies the conditions that only certain forms of purchases from select stores would make you eligible to access the EMI option benefit.

EMI on credit cards helps you in paying off your due principal amount. SOURCE: Walnut


Though this option is primarily available at the time of purchase, some banks also offer EMI payment option at a later date or even when there are outstanding dues. Before assessing credit card apply options, one must keep in mind that an EMI option is not mandatorily applicable to all forms of purchases or even cards.


Types of EMI on Credit Cards

Credit lenders understand your inability to pay the entire borrowed amount at once. In this regard, they furnish the EMI options in certain types. Almost all of the banks or credit card companies offer two types of EMI payment options:


Low rate interest EMI: In this type of EMI, you are required to pay the amount on a very low-interest charge. This charge is considered much lower than other interest charges that you have to pay on outstanding dues. However, you must ensure that the banks may charge a nominal processing fee for converting your outstanding amount into low rate interest EMI.


Zero-rate EMI: Zero rate interest EMIs are all the more rewarding. If you are fortunate enough to get this type of EMI, it will imply that your outstanding payment can be divided into numerous monthly payments without the need of paying anything extra on the EMI. Always prefer the credit card apply option where zero-rate EMI can be availed.

Things to Keep in Mind While Opting for EMI on Credit Card

There are various points to keep in mind before you take the option of converting your outstanding dues in payment form of EMIs.


  1. Many credit cardholders realize it too late that their credit cards do not facilitate the option of EMI at the time of purchase or even later. In other words, not every credit card offers EMI facility. Therefore, cardholders should keep this factor in mind while going through a new credit card apply option.
  2. In an EMI purchase, the credit card limit is reduced. For instance, if your credit limit is 50,000 and you made a purchase of 20,000 on EMI facility, your credit limit will directly fall to the remaining amount after the purchase: which here would be 30,000. However, if you are paying your EMIs on time, your credit limit will keep on increasing.
  3. EMI processing fee varies from lender to lender. The amount can be a small percentage of the loan amount or your purchase amount and the card type you have. Based on your credit score, the processing fee amount can also be waived off to some extent.
  4. EMI options on credit cards are best for online purchases. Online sellers like Flipkart or Amazon provide great offers on opting for EMI options. The period to be selected is also laid out on a broader range: from 3 months to 24 months.
  5. Maintaining the amount of credit more than or at least equal to the amount to be converted in EMI is necessary. If the credit availability is not meeting this requirement, the EMI request of the cardholder will not come to pass.


After knowing everything about the EMI applied on credit cards, it is needless to suggest that you must opt for a credit card apply option availing this benefit. Use the EMI calculator to know the amount you have to pay as EMI. With the help of EMI, you will be able to lift off some burden on your outstanding dues.


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