If you’re planning to make a purchase of our products and don’t have enough cash to pay for it upfront, an EMI (Equated Monthly Installment) option on your credit card can be a great way to spread out your payments over several months. With EMI, you can avoid documentation and enjoy the convenience of paying in installments.
To avail the EMI option, all you need to do is buy the product and select EMI on credit card as the payment option during checkout. Depending on the bank and the tenure you choose, you can pay back the purchase amount in 3, 6, 9, 12, 18, or 24 monthly installments, without paying any processing fees. While interest will be charged on the outstanding balance, there are usually no processing fees or documentation requirements.
For example, ICICI Bank offers an EMI option on credit cards for up to 24 months. If you make a purchase of Rs. 5000 and choose to pay it back over 24 months, your monthly EMI payment will be Rs. 241. The interest rate for this EMI option is 14.99%, as shown in the table below:
| Bank Name | Rate of Interest | EMI Tenure |
|---|---|---|
| AU Small Finance Bank | 14% | 3, 6, 9, 12, 18, 24 months |
| Axis Bank | 14% | 3, 6, 9, 12, 18, 24 months |
| Bank of Baroda | 13% | 3, 6, 9, 12, 18, 24 months |
| Citibank | 13% | 3, 6, 9, 12, 18, 24 months |
| HSBC Bank | 13% | 3, 6, 9, 12, 18, 24 months |
| ICICI Bank | 14.99% | 3, 6, 9, 12, 18, 24 months |
| IDBI Bank | 13% | 3, 6, 9, 12, 18, 24 months |
| IDFC First Bank | 14% | 3, 6, 9, 12, 18, 24 months |
| IndusInd Bank | 13% | 3, 6, 9, 12, 18, 24 months |
| Kotak Mahindra Bank | 13% | 3, 6, 9, 12, 18, 24 months |
| RBL Bank | 14% | 3, 6, 9, 12, 18, 24 months |
| Standard Chartered Bank | 11.88% | 3, 6, 9, 12, 18, 24 months |
| State Bank of India | 15% | 3, 6, 9, 12, 18, 24 months |
| Yes Bank | 14% | 3, 6, 9, 12, 18, 24 months |
| OneCard | 16% | 3, 6, 9, 12, 18, 24 months |
As you can see from the table, the interest rates and EMI tenures for different banks vary, so it’s important to compare the options and choose the one that suits your needs and budget the best.
FAQs
Q: What is an EMI option on a credit card?
A: An EMI (Equated Monthly Installment) option on a credit card allows you to convert a big-ticket purchase into smaller, more manageable installments, which you can pay over several months.
Q: How does the EMI option on a credit card work?
A: When you make a big purchase using your credit card, you can opt for the EMI option during checkout. You can then choose the repayment tenure (e.g., 3 months, 6 months, etc.) and the bank will convert the purchase amount into installments. You will have to pay back the installment amount every month until the end of the chosen tenure.
Q: Is the EMI option available for all purchases made using a credit card?
A: No, the EMI option is typically available on above listed banks only.
Q: Are there any additional charges for using the EMI option on a credit card?
A: While there are no processing fees or documentation requirements for using the EMI option on a credit card, you will be charged interest on the outstanding balance. The interest rate and other terms may vary depending on the bank and the tenure you choose.
Q: How do I know if my credit card offers the EMI option?
A: Most credit cards offer the EMI option, but it’s best to check it during order by entering credit card details it will be replied automatically are you eligible for EMI or not.
Q: Can I prepay the EMI installments on my credit card?
A: Yes, you can usually prepay the EMI installments on your credit card. However, there may be some prepayment charges or penalties, depending on the bank and the terms of the EMI option.
Q: What happens if I miss an EMI payment on my credit card?
A: If you miss an EMI payment on your credit card, you may be charged a late payment fee and interest on the outstanding balance. It’s important to pay your EMI installments on time to avoid any additional charges or penalties.
