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How does Credit Card EMI Work?
Posted on Friday, June 17th, 2022 | By IndusInd Bank
The availability of EMI facilities on credit cards has made it easy for people to make big-ticket purchases. Many people prefer not to make cash payments for big-ticket purchases and this is where EMIs can be of great help.
When you convert your purchase into monthly EMIs, you can repay the amount in small instalments, thereby ensuring that you can manage your expenses with ease. Not to mention, knowing how much you need to pay every month also lets you plan better. In this article, we decipher credit card EMIs and everything you should know about them.
How to avail credit card EMIs when Shopping Online?
If you have ever shopped for something online, you must have seen that major online retailers provide the option of converting the cost of your purchase into monthly EMIs using your credit card. These online retailers usually have tie-ups with the major banks and allow you to avail EMIs for your purchase.
So, if you want to purchase something online, you can opt for an EMI rather than paying the full amount. However, you will also need to choose the tenure of the EMI based on which banks decide the interest rate and payment amount. Depending on your convenience, you can choose tenure ranging from 3 months to 24 months or even higher.
How to avail credit card EMIs when Shopping Offline?
When shopping offline, you can make purchases using credit card EMIs. Make the purchase using your credit card and convert that into EMIs later, either using your bank’s app or calling the customer care. Once you make a big-ticket purchase offline using your credit card, most banks send you a notification about converting your purchase into EMIs.
What impact will credit card EMIs have on my credit limit?
When you purchase anything using your credit card, the amount is reduced from your credit limit. The same applies when you convert your purchases into EMIs. As you pay the EMIs, a portion of the EMI goes into reducing your outstanding balance, and the other portion goes into paying interest. So, as you come closer to paying off all of your EMIs, more and more of your credit limit will get unblocked.
To Conclude
Having the option to convert your big ticket purchases into easy and flexible EMIs using a credit card is super useful. If you haven’t tried it, do give it a try the next time you make a big purchase. If you are looking to apply for a credit card, you can do so online right here.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own 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 taking any financial decisions based on the contents and information.
