Do you ever find yourself holding back from making a purchase because of the cost? Credit cards can actually be a big help when it comes to achieving your financial goals! They allow you to pay for purchases in instalments, which can really come in handy. This way, you can avoid any financial strain and still get what you want.
Credit Card EMI allows cardholders to convert high-value purchases into small monthly payments, helping them manage their money better and make big purchases without immediate and upfront payments.
Let’s say your dream smartphone costs ₹1,00,000 (yes, the one that has the fruit logo on it). You use your credit card to pay for it. Now, there are three ways you can go about this purchase.
Financial institutions typically calculate credit card EMI by subtracting the down payment from the total amount and multiplying the remaining balance by the applicable interest rate, loan term, and processing fee. This is a common practice and is widely used by lenders to determine the monthly payments for borrowers.
Fortunately, you can easily calculate your EMI using this personal loan EMI calculator. This tool lets you input your loan amount, interest rate, and loan term to determine your monthly payments. Additionally, you can also compare different loan options to find the one that works best for you.
If you're hesitant to make a big purchase because of the cost, credit card EMIs might be right up your alley. They let you pay for high-value purchases in small monthly installments, which can be a lifesaver when you're short on cash.
But, keep in mind that EMIs come with interest rates that can add up over time, increasing the cost of your purchase. So, before you opt for an EMI, consider checking if the vendor offers zero-cost EMI.
Get the Fi-Federal Credit Card. This might just be what you need. With this card, you're assured of a 2% valueback through rewards. But that's not all, as you'll also get 5x on your top 3 brands, 2x on all partner brands, and 1x on everything else, including rent and fuel.
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Yes. You can pay EMI with a credit card, provided your card issuer offers this facility.
You can convert a purchase into EMIs on a credit card. Although the minimum amount of purchase to be converted into EMI varies from one bank to another.
The interest rate for the credit card EMI facility varies from bank to bank. It usually depends on your credit score, tenure, and prevailing interest rate range. It starts at 12.5% p.a.
Yes. Credit card EMI is also considered a loan because the financial institution provides you funds on a credit line and expects you to repay the principal and interest.