Posted on: May 23, 2024 Posted by: admin Comments: 0
How Does Credit Card Work for EMI?

Credit cards are versatile financial tools that offer various features, including the ability to convert large purchases into Equated Monthly Installments (EMIs). This option can make managing expenses easier by spreading the cost over several months. In this comprehensive guide, we will explore how credit card EMIs work, which cards are eligible, and other relevant details.

Understanding Credit Card EMI

Credit Card EMI is a facility that allows cardholders to convert high-value purchases into manageable monthly installments. This feature helps in reducing the immediate financial burden and makes big-ticket items more affordable.

How Credit Card EMI Works

When you make a large purchase, you can opt to convert the amount into EMIs. Here’s how the process typically works:

  1. Eligible Purchases: Not all transactions qualify for EMI conversion. Generally, purchases above a certain amount (set by the issuer) are eligible. You can choose to convert these transactions into EMIs at the point of sale or through your bank’s online portal or mobile app.
  2. Tenure Selection: You can select the tenure for the EMI repayment, usually ranging from 3 to 24 months. The available tenures and the applicable interest rates will be displayed during the conversion process.
  3. Interest Rate: The interest rate for EMIs can vary depending on the bank, the credit card, and the tenure chosen. Some banks offer promotional 0% interest EMIs for specific periods or purchases.
  4. Monthly Installments: Once you convert a transaction to EMI, the monthly installment amount, including interest, will be billed to your credit card statement each month until the end of the tenure.

Must read: Understanding How Credit Card Interest Works

Common Questions About Credit Card EMI

Can I Make EMI of My Credit Card Bill?

Yes, many banks allow you to convert your entire credit card bill into EMIs. This is particularly useful if you have multiple high-value transactions that you want to pay off over time.

Which Card Is Eligible for EMI?

Most major credit cards issued by banks in India are eligible for EMI conversion. However, eligibility may depend on factors such as the type of credit card, the issuing bank, and the purchase amount. Typically, premium cards and co-branded cards with merchants offer more flexible EMI options.

Which Card Is Used to Pay EMI?

EMIs are usually paid using the same credit card on which the purchase was made. The monthly installment amount is automatically deducted from your credit card limit each billing cycle.

ईएमआई का भुगतान करने के लिए किस कार्ड का उपयोग किया जाता है?

ईएमआई का भुगतान करने के लिए उसी क्रेडिट कार्ड का उपयोग किया जाता है जिस पर खरीदारी की गई थी। मासिक किस्त की राशि हर बिलिंग साइकिल में आपके क्रेडिट कार्ड सीमा से स्वचालित रूप से कट जाती है।

How Is EMI Deducted from Credit Card?

The EMI amount is automatically deducted from your credit card’s available limit each month. The deducted amount includes both the principal and the interest component of the EMI. This continues until the entire amount is repaid.

Must read: How Credit Cards Work?

Credit Card EMI on Popular Platforms

How Credit Card EMI Works on Amazon

Amazon India offers EMI options on a wide range of products. Here’s how it works:

  1. Select Product: Choose the product you want to purchase and proceed to checkout.
  2. Choose EMI Option: On the payment page, select the EMI option and choose your preferred tenure.
  3. Complete Purchase: Confirm the EMI plan and complete your purchase. The monthly installment will be billed to your credit card statement.

How Flipkart EMI Works on Credit Card

Similar to Amazon, Flipkart provides EMI options on many items. The process involves:

  1. Select Product: Add the desired product to your cart and proceed to checkout.
  2. Select EMI: On the payment page, choose the EMI option and select the tenure.
  3. Confirm and Pay: Complete the transaction. Your monthly credit card statement will reflect the EMI installment.

Key Considerations for Credit Card EMI

Full Amount Deducted on Credit Card EMI

When you opt for EMI, the full purchase amount is initially blocked on your credit card limit. As you repay the EMIs, the blocked amount is gradually released, freeing up your credit limit accordingly.

Can We Take 2 EMI on Credit Card?

Yes, you can have multiple EMI conversions on a single credit card, provided you have sufficient credit limit available. Each EMI transaction will appear separately on your statement.

Credit Card EMI Interest Rate

Interest rates for credit card EMIs can vary widely. They typically range from 12% to 24% per annum, depending on the bank and the tenure. Some promotional offers may provide 0% interest for a limited period.


Credit card EMIs offer a flexible way to manage large expenses by spreading the cost over several months. Understanding how EMIs work, the eligibility criteria, and the interest rates can help you make informed decisions and take full advantage of this facility.

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