Do Not Call
Understand the process, advantages, and key considerations of turning your credit card purchases into manageable EMIs.
Credit card EMI conversion allows you to split large purchases into smaller, fixed monthly payments. It has become a preferred option for many in India due to its convenience. Instead of repaying the full credit amount in one billing cycle, users can opt for easy instalments over a chosen tenure.
This helps manage expenses better and reduces immediate financial stress. As digital spending rises, credit card EMI options are becoming increasingly relevant for salaried and self-employed individuals alike.
When you convert a credit card to EMI, your total purchase amount is divided into equal monthly payments, spread across a tenure selected by you. Interest rates and processing fees may apply, depending on the bank and the transaction.
Make a Purchase: Use your credit card to pay for a product or service.
Choose EMI Option: Log in to your bank’s app or website and select the transaction to convert.
Select Tenure: Choose an EMI duration — usually ranging from 3 to 24 months.
Check Interest & Fees: Review the applicable interest rate and processing fee, if any.
Confirm Conversion: Submit the request online, via phone banking, or through the bank’s customer service.
If you spend ₹30,000 on a credit card and opt for a 6-month EMI at 15% interest per annum, you will repay approximately ₹5,250 per month. The exact EMI depends on interest rates and charges.
Most banks allow EMI conversion through mobile apps, net banking, customer service calls, and SMS. Some merchants also offer EMI conversion at the point of sale during checkout.
Converting a high-value credit card transaction into EMIs can offer financial flexibility and reduce stress on your monthly budget. It turns a lump-sum payment into manageable parts.
Lower Monthly Outflow: Instead of repaying the full amount at once, you pay in smaller, fixed monthly instalments.
Improved Cash Flow Management: You can keep enough funds for other expenses while repaying large purchases gradually.
Affordable Large Purchases: EMI makes it easier to buy items like appliances, electronics, or flight tickets without exhausting your savings.
No Need for Separate Loans: You don’t need to apply for a personal loan; the facility is available directly on your credit card
Interest-Free Options: Some credit cards offer zero-interest EMIs during promotional periods or from select merchants.
This flexibility makes credit card EMI conversion a practical tool for managing planned or urgent expenses without disrupting your budget.
While EMI conversion helps manage costs, it is essential to understand the related charges. Not all conversions are interest-free, and fees may vary across issuers.
Interest Charges: EMI interest rates usually range from 13% to 20% per annum, depending on the issuer and tenure.
Processing Fees: Banks may charge a one-time fee between ₹100 and ₹500 per transaction.
Pre-closure Penalty: If you repay the EMI before the term ends, a penalty may apply—generally 2%–3% of the outstanding amount.
GST on Charges: All interest and processing fees are subject to 18% GST.
These charges can increase the effective cost of your purchase. Always calculate the total repayment before deciding to convert the credit card to EMI.
Credit card EMI conversion is best used when managing high-value purchases or unexpected expenses. It is not ideal for everyday or low-cost spending.
Emergency Expenses: For sudden medical bills or urgent repairs where full payment may disrupt your cash flow.
Planned Large Purchases: Items like furniture, electronics, or travel bookings can be paid off gradually through EMIs.
Cash Flow Management: If your income is fixed but expenses vary, EMIs help balance out monthly outgo.
No-Interest Offers: If your card provider offers interest-free EMIs, it can be a cost-effective financing tool.
Before opting, compare the EMI interest with other borrowing options. If charges are high, a personal loan or BNPL plan may be more economical.
It can be a smart option for handling large or unplanned expenses. Just ensure you review the interest rate and charges before converting.
Yes, if you need to spread out payments without straining your monthly budget. It’s best used for essential or planned big-ticket items.
Interest rates typically range from 13% to 20% per annum. Some offers may be interest-free, especially during promotions or partner deals.
Cards from HDFC Bank, ICICI Bank, SBI Card, and Axis Bank are known for flexible EMI terms and merchant offers. Features vary, so compare before choosing.
You cannot convert your credit limit itself, but you can convert eligible purchases made within your limit into EMIs using your card provider’s facility.
