If you have a Credit Card there are a number of ways you can buy things online. You can either charge the entire amount to your Credit Card and pay the entire amount when the bill is generated, you can also convert the entire purchase amount into EMIs.
Equated Monthly Installments (EMIs) are a great way to pay for large expenses, if you convert your purchase into EMIs you will only be charged a portion of the expense every month, this will prevent you from having to pay any penalties in case you do not have the entire amount for the purchase when the bill is generated. Let’s take a look at how Credit Card EMIs work.
EMI Tenures available
Credit Card EMIs come in various tenures, ranging from 3 months all the way to 24 months (2 years). Most Credit Cards offer EMIs for 3, 6, 9, 12, 18, and 24 months.
Depending on the bank the minimum amount to avail Credit Card EMIs will range.
Most Credit Cards do not allow you to convert purchases of Gold, jewelry, fuel or cash transactions to EMIs.
Most Credit Cards charge a monthly interest rate on reducing balance for Credit Card EMIs. This allows you to enjoy a lower interest rate than the usual revolving interest you would pay on your Credit Card.
There is usually a nominal processing fee charged for availing Credit Card EMIs.
Most banks do not allow transactions older than 30 days to avail Credit Card EMIs.
How to avail Credit Card EMIs
You can convert your Credit Card transactions into EMIs either online or by calling the concerned bank.
Credit Card EMIs through net banking
Step 1: Log in to the concerned bank’s Internet Banking portal
Step 2: Go to the Credit Card section and select the Convert to EMI option
Step 3: Choose the Credit Card, Transaction you would like to convert and the EMI tenure
Through Mobile App
Step 1: Log in to the concerned bank’s mobile app
Step 2: Select the Credit Card
Step 3: Go to the ‘Recent Transactions’ section of the app
Step 4: Select the transaction you would like to convert to EMIs
Step 5: Choose an appropriate EMI tenure and hit ‘Submit’
You can also call the relevant bank’s customer care number and request them to provide you the Credit Card EMI payments facility on recent transactions.
So the next time you make a large purchase on your Credit Card, consider converting it to a Credit Card EMI. This could save you a lot of trouble when you pay EMI online after buying products from Flipkart, Amazon, etc. This will also reduce your payment liability on the next billing cycle.