I have two credit cards, so I know how credit card EMI works. Credit card companies make money and earn profit by charging interest on late payments that usually people make. If you’re among those people who pay off their credit card bills within the due dates, then you ain’t their favorite as you ain’t giving them a chance to earn more money on your financial transactions.
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If you’re buying an item that is more than Rs. 20,000, for example, a vehicle, furniture, electronic appliance, etc., then you can convert it to an EMI.
The EMI will be calculated based on the interest rate charged by the bank, the tenure you select, and the down payment which you offer.
For instance, if you’ve bought a mobile worth Rs. 30,000 and pay Rs. 15,000 as a down payment. Then you can pay the rest of Rs. 15,000 as EMIs for a period of one year with an interest of 12%. The EMI you’ll have to pay for 12 months will be Rs. 1,800.
I hope now you know how does EMI work on credit card.
How to Convert Credit Card Payments into EMIs?You can convert your credit card payments into EMIs during the time of purchase itself. If you have only a part of the total amount at the time of purchase, then this amount can be used as a down payment. You can convert the rest into an EMI.
If you want to go for an EMI option, then you must be deemed eligible for the EMI by banks. Banks consider it as a loan in which they are offering you money and you’re paying them on a monthly basis. Banks allow you to make EMI payments only after checking your current loans, credit score, and repayment habits of previous loans.
I hope I cleared all your doubts on how EMI in credit card works.
If you are looking to take a home loan, then you should check out NoBroker’s Housing Loan ServicesRead more:
can I pay home loan EMI through credit card?
How to pay home loan EMI through credit card?
This is all on how credit card EMI works.
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How credit card EMI works?
Kamal
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3 Year
2022-04-01T15:39:22+00:00 2022-04-01T15:42:35+00:00Comment
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