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Credit Card EMI

Credit Card EMI Calculator

Last Updated 22nd Jan 2022

  • EMI schemes on a credit card are issued by credit card companies that have special tie-ups with the e-merchant.
  • The bank pays the full amount of your purchase to the vendor if you opt for Credit Card EMI.
  • You can repay credit EMI in easy instalments over 3 months, 6 months, 9 months, 12 months or 24 months – depending on your choice.
  • Banks charge an interest rate in the range of 11%-15% for Credit Card EMI schemes.
  • In case you prepay the Credit Card EMI loan a prepayment penalty of 2%-3% of the outstanding balance is charged.
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Credit Card EMI Scheme

This is the season when all retailers offer amazing sales and discount deals, especially your favourite online shopping site. Having a Credit Card can double your benefits in the form of additional discounts and cashback offers.

Sometimes, it so happens that a certain product, such as a mobile phone that you wish to buy is way out of your budget. But, having a credit card can steer you out of that problem too! These days many e-shopping sites give you the option of buying your favourite products with an easy EMI scheme. You can go for this option if you do not have ready cash and can’t afford to make a big fat payment. Here, you have to opt for a suitable tenure for yourself which can generally go up to 24 months. The bank charges interest on the borrowed amount but some banks also offer No Cost EMI for a shorter tenure.

Credit Card EMI Calculator

Credit card EMI calculator helps you calculate your EMI and view the monthly repayment schedule. The monthly payment amount is added to the interest and service tax. Depending on the bank, the interest rate will vary. You can choose to make the payment in 6, 9, 12, 18, and 24 installments. There are many credit card EMI calculators available online which instantly check whether you can convert your credit card repayments into EMIs, and see what the total credit card EMI interest rate charges would be.

How Does Credit Card EMI Work?

People use credit cards for the purpose of enjoying deferred payments. These payments also enjoy an interest-free period of 40-45 days which constitutes your billing cycle plus grace period. But sometimes, it may not be possible to pay back within the interest holiday period, especially for a large purchase, such as a refrigerator or a high-end television. This is where the credit card EMI schemes come into play. You cannot opt for EMI without a credit card. Consider the following steps to know how credit card EMI works.

  • EMI schemes are issued by credit card companies that have special tie-ups with the e-merchant.
  • Once you opt for the EMI scheme, the bank pays to the vendor the full amount of your purchase on your behalf.
  • Then, you can repay your bank in easy instalments over 3 months, 6 months, 9 months, 12 months or 24 months – depending on your choice.
  • Banks charge an interest rate in the range of 11%-15% for providing this service, which increases the final price of the purchase for you.
  • Banks also charge a processing fee, which is usually 0.5%-1% of the amount of your purchase.
  • If in the future, you have enough surplus cash and wish to close the Credit Card EMI loan, you will be charged a prepayment penalty of 2%-3% of the outstanding balance.

Tips To Consider while choosing Credit Card EMI

  • Choose a lower tenure within which you can conveniently repay the amount. Higher tenure would mean more cash outflow as interest.
  • Be watchful of EMI options that have zero processing fees, especially during festive seasons.
  • Read all terms and conditions, especially related to pre-closure, and interest rates before choosing the scheme.
  • Don’t default on payments because it will negatively impact your credit score.

Although the credit card EMI option helps you own the things you wish to have in a convenient and pocket-friendly manner, the truth is you eventually end up paying more with the added interest payments. Simply put, if you can afford to make a lump sum payment, then paying for it in cash is the best option. But if you are tight on your budget, and have a lot of bill payments to take care of, then a credit card will rescue you and help you buy what you want.

FAQs

Can I pay all credit card EMI at once?

Yes, you can repay the outstanding balance of your credit card bill at once; however, most of the institutions charge a prepayment penalty on prepaying the account before the due date.

How does Credit Card EMI work?

EMI schemes on a credit card are issued by credit card companies that have special tie-ups with the e-merchant. The bank pays the full amount of your purchase to the vendor if you opt for Credit Card EMI. You can then repay credit EMI in easy instalments over 3 months, 6 months, 9 months, 12 months or 24 months – depending on your choice.

Should you pay a credit card bill over EMI?

If you cannot pay the full credit card bill, it may affect your credit score. Thus, converting the credit card dues to EMI has a minimal impact on your credit card. However, banks charge interest on credit card EMI Loan.

How is EMI on a credit card calculated?

Your credit card EMI is determined based on the remainder of your total amount of purchase multiplied by the rate of interest, tenure, and the processing charges.


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Credit Card News - Jan 2022
  • 2021-12-28 : RBL Bank Extends Partnership with Bajaj Finance for 5 Years
    RBL Bank has extended the co-branded credit card partnership with Bajaj Finance till 2026. In addition, the portfolio of co-branded credit cards also crossed Rs. 10 lakhs card mark.
  • 2021-12-24 : RBI Extends Deadline for Debit and Credit Card Tokenisation
    RBI has extended the deadline for tokenisation of debit and credit card to July 1, 2022. Earlier, the last date was January 1, 2022.
  • 2021-12-17 : AU Small Finance Bank and Pine Labs Enters into Partnership
    Pine Labs, a merchant commerce platform, has partnered with AU Small Finance Bank to allow credit cardholders to avail of equated monthly instalments offers at the point of sale. As a result, the customers will be able to convert their regular purchase into interest-free EMIs.
  • 2021-12-15 : Axis Bank Witness Credit Growth in 18-24 Months
    Axis Bank has seen double-digit growth in GDP and Credit in FY 2024. At the same time, the GDP and credit are seen at 9.5% and 7% in FY 2022. Therefore, the bank aims to achieve GDP and Credit Growth at 8.2% and 8%, respectively.
  • 2021-12-15 : SBI Launches Fitness Focused Credit Card
    State Bank of India has launched a fitness-focused credit card, SBI Pulse Card. The card provides welcome gifts such as Noise Color Fit Pulse Smartwatch worth Rs. 4999 and other health benefits.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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