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What are Credit Card EMIs & How They Work
Posted on Wednesday, December 27th, 2023 | By IndusInd Bank
Credit card EMIs offer the flexibility to convert big-ticket purchases into affordable monthly instalments, enabling users to buy expensive items without straining their finances.
Flexibility is the key to unlocking financial opportunities, and credit cards are an indispensable tool that provide convenience and flexibility in handling everyday expenses. Whether you want to cover large payments or handle unexpected emergencies, credit cards can come to your rescue. Beyond the ease of cashless transactions, credit cards offer a feature that enhances financial management – Credit Card EMIs (Equated Monthly Instalments).
What are Credit Card EMIs?
With Credit Card EMIs, you can convert high-value purchases into smaller monthly payments. Rather than paying the full amount at once, you can choose to pay off the debt gradually in EMIs over a specified period. This facilitates budgeting and makes expensive items more accessible without causing financial stress.
Types of Credit Card EMIs
1. Zero-interest-rate EMIs:
With zero-interest-rate EMIs, you can repay the amount without paying interest on top of it.
2. Reduced Interest Rate EMIs:
With reduced rate interest EMIs, you can enjoy a lower monthly interest rate, which ranges from 1.25% to 1.99% per month. This rate is considerably lower than the interest imposed by credit card issuers for overdue or missed payments.
How Can You Convert Credit Card Payments to EMIs?
You need to get in touch with your credit card issuer to convert credit card payments to EMIs. They usually offer EMI conversion options for eligible transactions, such as large purchases. Inform them that you would like to convert a specific transaction into EMIs, and inquire about the available tenure options. Once approved, the total amount will be divided into fixed monthly instalments with an associated interest rate.
Factors To Consider When Converting Your Credit Card Payments into EMIs
Here are some important factors to consider before converting your credit card payments into EMIs:
| Interest Rates | Credit card issuers charge interest on credit card bills when converted to EMIs. The interest rates may vary based on various factors like down payment and repayment tenure |
| Reducing Balance Method | The interest rate charged is determined by the remaining loan amount at the end of each month |
| Processing Fee | Some credit card issuers offer EMI conversions without additional charges, while others may charge a processing fee. It is a one-time charge, which can be a flat rate or a percentage of the total amount |
| Repayment Tenure | You can choose a repayment tenure between 6 months and 2 years |
| Foreclosure & Cancellation | You can cancel credit card EMIs if you have sufficient money to pay off your debt before the tenure ends. However, you may have to pay a foreclosure fee to cancel the EMIs |
Apply For an IndusInd Bank Credit Card and Manage Your EMIs Effectively
IndusInd Bank provides a selection of credit cards to help boost your financial flexibility. You can select the one that best suits your financial requirements and goals, and gain access to a range of benefits and rewards. A noteworthy feature of these credit cards is effective EMI management. It enables you to handle substantial purchases by spreading the cost across convenient monthly instalments.
Here are some of the notable features and benefits of IndusInd Bank credit cards:
- Reward points on every purchase with bonus reward points at reaching spending milestones
- Reward points can be redeemed for cash to pay credit card bills
- Select from a range of credit cards that have no joining and annual fees
- Free access to airport lounges at both domestic and international airports
- Waived fuel surcharges at Indian petrol pumps
- Attractive cashback deals and offers on shopping, flights, movie tickets, dining, groceries and more
Apply for a credit card online with IndusInd Bank and manage your high-end purchases with easy EMIs!
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.
