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Consumer Guide: How to Convert Credit Card Purchases to EMI?

Updated on: 14 Dec 2021 // 29 min read // Credit Cards
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Life, precisely shopping spree, has become a hassle-free and on-the-go event, ever since Credit Cards have made entry into our wallets! You pay instantly for whatever you want and get freedom & flexibility to make the payments in the next 30-50 days. However, there are times instantaneous splurge results in shopper’s guilt, and you seek help to manage the finances.

Each Credit Card comes with a convenience of rolling over the balance to the next billing cycle. Almost all best Credit Cards in India support this facility. You are only required to pay the minimum due, which is mostly 5 % of the outstanding. However, it is recommended to avoid late payments and save the high-interest liability on your credit card dues by opting for an easy EMI option.

Yes, the facility of converting transactions into EMIs enhances the user-experience of cardholders. Under this facility, you can convert your purchases, above a specified threshold, or the entire outstanding into EMIs instantly. The transaction amount is divided into a given number of EMIs, which will be charged to your Credit Card statement every month. This allows you to purchase high-value items instantly and pay for them conveniently, without stressing your monthly budget.

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When can you convert your Credit Card purchases into EMI?

There are two ways in which you can avail of this facility, i.e., convert a single transaction into EMI or convert the entire outstanding into EMIs. To convert the transaction or balance EMIs, the feature must be supported by your bank.

  • Converting a single transaction into EMIs: When you purchase a product online or offline, and it is above the amount specified by your Credit Card issuer, you can convert it into EMIs. Some Credit Cards charge interest against the EMIs while others offer No Cost EMIs, where no additional charges are levied. The number of EMIs available range between 3 months to 24 months. When you convert a transaction into EMI, the Credit Card limit will be blocked for that amount. It will be restored gradually every month as you repay the balance.
  • Converting entire Credit Card dues into EMIs: If you are unable to pay your Credit Card dues in one-go, then you can get them converted into EMIs. This will reduce the interest cost that you have to bear and also help you repay the debt easily. This facility can be availed through internet banking or phone banking.

How does Credit Card EMI facility work?

The facility of converting your transactions or Credit Card dues into EMIs is similar to availing an instant loan. The total cost of the transaction or the entire dues will be divided into the selected number of EMIs. The EMIs will be added to your Credit Card statement every month and must be paid along with the bill before the due date. As a result, you need not pay the entire amount together. You can pay it in EMIs conveniently, albeit at a lower interest rate.

After you have completed the payment, initially, the total amount would be debited from your Credit Card. After a couple of days, the amount will be reversed to your Credit Card account after deducting only one EMI. Subsequently, every month the EMI will be charged to your account till completion of the repayment tenor.

Like other EMIs, these EMIs also comprise of the principal component and interest component. The interest rate can vary between 13% to 19%, depending on the Credit Card you use. The interest on EMI repayments is much lower than interest on Credit Cards outstanding which range from 36 to 42% p.a. for most cards. Some banks also offer the facility of No Cost EMI, wherein the EMI will comprise of only the principal amount. In general, higher is the repayment tenor chosen, higher would be interest outgo & lower would be the EMI.

How to convert Credit Card purchases to EMI?

Now, the most important part, How to Convert Credit Card Purchases into EMI.

There are multiple options through which you can avail this facility, such as:

  • Converting a single transaction into EMIs

    • Merchant website: When you are purchasing a product online, during the check-out phase, you are given the option to select different payment modes.

      Here you must select the “Credit Card EMI” option. Thereafter, you need to select the repayment tenor you wish to opt for; the interest rate will be mentioned alongside each option. Click on the confirm button, and the payment will be processed.

    • Credit Card Company: If you are purchasing the product from a retailer, then you can opt for the EMI facility by getting in touch with your Credit Card issuer. You can use net banking, mobile app banking, or phone banking.
    • Internet Banking or App banking:

      • Log-in to your Credit Card net banking account.
      • Select the Credit Card option and then click on recent transactions or transaction history.
      • Herein, you will be able to see the eligible transactions that can be converted into EMIs.
      • Select the transaction and then choose the number of EMIs you want.
      • Give your confirmation. The transaction will be converted into EMI within a couple of days.
    • Customer Care or Phone Banking:

      • Call the customer care number or phone banking number.
      • Connect with the operator.
      • Verify your credentials.
      • Then request the operator to convert the transaction into EMI.
      • You will be informed regarding the available options.
      • Give your approval, and the transaction will be converted into EMIs.
  • Converting entire Credit Card dues into EMIs

This facility can be availed from your Credit Card issuer only. The process of converting the entire Credit Card dues into EMIs is almost the same as what you need to follow to convert a single transaction into EMIs. Though, the availability of this facility depends on the type of Credit Card you are using.

Benefits of converting Credit Card purchase into EMIs

Following are the major benefits that you can enjoy by availing this facility:

    • Ease from paying the whole amount in one go.
    • You have the option of choosing the number of EMIs as per your convenience.
    • You can save a lot of money on the interest cost of card outstanding.
    • You can afford to purchase products which you otherwise cannot.
    • Helps you repay your Credit Card debts efficiently.
    • Reduces the pressure on your monthly financials.
    • Minimal or nil processing charges depending on the Credit Card.

    The facility of converting your purchases into EMIs is an excellent benefit that you can enjoy with your Credit Card. Though, you must act responsibly and should not purchase products which you do not need at all. Rather plan it & swipe it judiciously to live the life you deserve.

    Also Read: How to Convert HDFC, SBI & ICICI Credit Card Purchases to EMI?

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