24 February, 2026 | 15:54 IST
Big-ticket purchases on a credit card can tend to strain your monthly budgets, especially if the full amount has to be paid back all at once. Many credit cards now carry an EMI conversion feature that enables you to convert huge expenses into smaller and manageable monthly installments. Instead of paying the entire amount at once, the price is divided over a preset term, which varies between several months to a couple of years.
With the credit card EMI facility, you can budget your repayments more effectively and steer clear of the burden of high interest charges or even a cash crunch. Having said that, though the process seems convenient and flexible, one should be aware of the terms, particularly credit card EMI charges and fees, before availing themselves.
Moneycontrol streamlines the experience of finding and comparing credit cards through its app and portal. Through partnerships with the major banks and NBFCs, it has created a customised list of cards for users, all accessible through a paperless application procedure.
Table of Contents
What Is A Credit Card EMI?
A credit card EMI is a repayment facility offered by banks and credit card issuers where your high-value purchases are divided into smaller installments. When you choose this facility, the purchase amount is blocked against your card’s credit limit and paid back in monthly installments.
Eligibility For Converting Credit Card Purchases To EMIs
Card type and variant: All credit cards may not have the EMI facility. Clarify with your bank or issuer if your particular card variant is eligible.
Credit limit and available balance: EMI conversions are allowed only if your card has enough available credit. If your card is near its limit, you will need to repay some dues before applying.
Transaction amount and type: Many banks set a minimum and maximum purchase value that qualifies for EMI.
Repayment history and credit score: A credit score of more than 750 is usually preferable for it to get approved. Default or late payments lower your chances of approval for the EMI facility.
How To Convert A Purchase Into Credit Card EMI
At the time of purchase: While buying products online or offline, you might see an option for payment in EMIs. Choose your desired tenure and authenticate the conversion at the time of payment.
Online or mobile app: Following a transaction over the qualifying amount, log in to your banking portal or app. Go to your credit card page, select the transaction and convert it into EMI.
Even though the concept of paying in instalments sounds good, one should know the charges of credit card EMI:
Interest rate: Banks usually charge an interest rate between 12% and 24% annually on EMI conversions of credit card payments. This can be a substantial amount nonetheless.
Processing fee: Majority banks impose a processing fee of 1% to 3% of the transaction value as a one-off charge.
Prepayment or foreclosure fees: If you want to pay back your EMIs before the tenor, there could be a foreclosure charge, which is normally a percentage of the outstanding amount.
Do read the terms and conditions and work out the total cost (fees + interest) before you opt for the EMI plan.
Benefits Of Using Credit Card EMI
A credit card EMI breaks up your expenses, allowing you to pay for big credit card buys with ease.
EMI conversions are usually pre-approved, so no paperwork or approval procedure is required.
You can opt for a repayment schedule that fits within your monthly budget, from as low as three months to as long as two years.
Because you are not giving away a lump sum, your liquidity is preserved for other purposes.
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Impact on credit limit: The full amount of the purchase is blocked against your credit limit. This reduces your available credit until EMIs are repaid.
No reward points: Some banks do not offer reward points on purchases made through EMI.
Hidden charges: Always check for any hidden credit card EMI fees, such as documentation charges or insurance tied to EMI plans.
Using Credit Card EMI is advisable when:
Credit card EMI is a handy tool for managing large expenses without compromising your cash flow. It’s important to assess the total cost involved, including credit card EMI charges and fees, and not get carried away by the convenience.
To help you make smarter choices, Moneycontrol has teamed up with top banks and NBFCs to bring you a one-stop platform for finding the credit card that fits your needs. The entire application process is digital, paperless and designed to be completely hassle-free.
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