{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/credit-card\/how-does-emi-work-on-credit-card\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/credit-card\/how-does-emi-work-on-credit-card\/","headline":"How Does Credit Card EMI Work?","name":"How Does Credit Card EMI Work?","description":"Credit cards are a convenient and flexible way to manage your everyday expenses and make purchases. What\u2019s more? You also enjoy some rewards on your credit card transactions. But, did you know there is a convenient way to manage your credit card repayment? Banks provide the option to convert large credit card purchases into equated...","datePublished":"2024-08-08","dateModified":"2024-08-08","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/how-does-emi-work-on-credit-card.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/how-does-emi-work-on-credit-card.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/credit-card\/how-does-emi-work-on-credit-card\/","about":["Credit Card"],"wordCount":1211,"articleBody":"Credit cards are a convenient and flexible way to manage your everyday expenses and make purchases. What\u2019s more? You also enjoy some rewards on your credit card transactions.But, did you know there is a convenient way to manage your credit card repayment? Banks provide the option to convert large credit card purchases into equated monthly instalments or EMIs.Let\u2019s learn more about how credit card EMIs work, and what you should consider before opting for this this feature. Understanding How Credit Card EMIs WorkWith Credit Card EMIs, you can convert the total amount of a large purchase made on your credit card into smaller, manageable instalments.When you choose to convert a transaction into an EMI, the transaction amount is divided over a specified tenure. The instalment tenure can vary, ranging from 3 to 24 months.To enable this process, you must select the EMI option at the time of the purchase or through your credit card issuing bank\u2019s app or customer service. The interest rate and tenure are fixed. You must pay the EMI amount each month until the balance is paid in full. With credit card EMIs, you can spread out the bill payment over a period instead of paying the entire amount at once. This allows you to make high-value purchases more affordable. Now that you know how credit card EMI works, let\u2019s see how you can opt for it.Converting Credit Card Repayment into EMIsHere\u2019s how you can convert your credit card purchase into EMIs:1. Check EligibilityEnsure the purchase you want to convert into EMIs meets the minimum amount set by your bank.2. PurchaseMake the purchase using your credit card. You can use your credit card at retail stores, online shopping sites, or for other specific services.3. Request for EMI ConversionOnce you have made the purchase, contact your bank to request an EMI conversion. You can also convert transactions into EMIs at the point of sale or online checkout.For instance, with the IndusInd Bank Nexxt Credit Card, you can opt for EMI conversion at checkout. The IndusInd Bank Nexxt Credit Card is India\u2019s first interactive credit card. It has in-built LED buttons that allow you to opt for EMI payments and selecting a desired number of months before authorising the transaction.4. Review Rates and FeesReview the applicable interest rate and any additional fees. Interest rates are fixed, which makes it easier to plan your budget.Once approved, your credit card statement will reflect the new EMI structure. What to Consider Before Opting for Credit Card EMIs?Even though you may know how EMI work on credit cards, there are some factors you must consider before selecting this option:1. Interest RatesUnderstand and compare the interest rates applied to the EMI to ensure you are getting a competitive rate.2. Processing FeesSome credit card issuers charge a processing fee for converting transactions into EMIs. Factor this into the overall cost.3. Tenure OptionsChoose a tenure that fits your financial situation. Longer tenures reduce the monthly payment amount. However, it increases the total interest paid.4. Impact on Credit LimitBe aware of the impact on your available credit limit before converting a purchase into EMIs. Also Read: Credit Card Repayment – Watch Out For APR InterestConclusionCredit card EMIs offer an easy way to manage large purchases by breaking them down into monthly payments. Understanding how EMI works on credit cards can help you make informed financial decisions and manage your expenses with ease. Looking for the best credit cards with flexible EMI options? Explore IndusInd Bank\u2019s range of credit cards that not only offer flexible repayment options but also competitive interest rates, a hassle-free conversion process, and exclusive privileges!Apply now for credit card today and manage your finances with ease!Disclaimer:The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.Share This:"}