How to pay home loan EMI through credit card?

In India, home loans can not be paid using a credit card. Home loan is a big amount and it is a secured loan. Banks prefer paying EMI by linking your primary account. On the other hand, home loans carries an Interest rate of 10-11% whereas the credit cards interest rates are in the range of 36%.  So paying low cost debt with with another high cost debt is not a good choice. I had planned by monthly EMIs before availing for home loan based on my income and other expenditures. NoBroker EMI calculator came handy. You can try it too. [widget_emi_calci]

When you are running low on cash, you can pay your home loan EMI with the help of a credit card. Though, you should only opt for the option if you can repay the credit amount on time. In this comment, I will share with you how to pay EMI through credit card and its disadvantages. 

Can I pay loan with credit card ?

Yes, you can pay the home loan, personal loan, etc with your credit card. In my opinion, this method is less ideal because of the extra fees. You can buy products, and services from your credit card as well. 

Now, you know, can I pay home loan EMI through credit card. You should know its disadvantages. 

• When you pay your loan EMI with your credit card you are borrowing more money from the bank. In the long run, it will be harmful to you. 

• If you don’t pay your credit card bill on time, you will start to incur a heavy late payment fee. Ultimately, it will increase your financial burden.

• If you keep incurring late charges, your credit card score aka CIBIL score will reduce as well. 

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UPI :

I use the UPI method on the credit card to pay my EMI each month. I just enter my UPI ID on the bank page. Then, I put my BHIM password and the EMI is sent. Though, you can also pay your loan by debit card, credit card, or Net banking. 

 If not UPI, I use the iMobile Pay feature of ICICI bank. I've mentioned the process below. 

1. Download the ICICI Bank iMobile app and log in with your credentials.

2. Select the 'Cards' options.

3. Select the Credit Card of your choice.

4. Click on the 'Convert to EMI' option under the 'Recent Transactions' section.

5. Select the tenure for loan EMIs and hit on 'Submit'.

6.  This is all from my end on how to pay EMI through credit card.

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I recently got a home loan to buy an apartment. I needed to find a solution to pay off my loan EMIs without using up any of my savings because I had a limited budget. I made the decision to use my credit card to pay my loan EMIs. So, if you are wondering about how to pay EMI using credit card, I can share the steps that I followed.

Using a credit card for your home loan EMI payment through credit card is an option, if you lack the funds or liquidity. A credit card is the best option because it allows you to make purchases up until the payment due date. You are giving yourself those extra days for free as long as you pay this back before the deadline.

Loan payment through credit card?

You can use a debit card, credit card, net banking, or UPI to pay EMI with credit card.  I am paying my loan EMI via net banking. I have also selected the autopay option on net banking, through which the loan EMI gets deducted from my account on its own.

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The advantages of paying loan EMIs with a credit card include the following:

• You could raise your credit score as a result.

• You may have more financial flexibility.

• It may enable you to earn benefits like cash back or travel miles.

After understanding how to pay EMI using credit card, I’d like to say that overall, paying loan EMIs through a credit card can be a good option for people who are looking to improve their credit score or earn rewards.. However, it's important to read the terms, handle your credit card carefully, and make timely payments.

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How do I Pay my Rent with a Credit Card?  Can we pay the electricity bill with a credit card?  How to pay home loan EMI through a credit card? 

I remember that I too asked the same question ‘Can we pay home loan EMI through credit card?’, to my lawyer a few months back. He told me that it is generally not possible to pay home loan EMI through credit card in India. Home loans are secured loans, and banks prefer that EMIs be paid through direct debit or net banking. This is because credit cards are unsecured loans, and banks have a higher risk of default with credit cards.

However, if someone asks you ‘Can I pay my home loan EMI through credit card?’, you can inform them that there are a few ways to pay home loan EMI through credit card in India indirectly:

• Use a balance transfer: You can transfer your home loan balance to a credit card with a 0% balance transfer offer. This will allow you to pay off your home loan without interest for a period of time, typically 12-18 months. However, you will need to pay a balance transfer fee of 2-3% of the amount transferred.

• Use a personal loan: You can take out a personal loan to pay off your home loan balance. Personal loans are typically unsecured loans, so you may be able to get a personal loan at a lower interest rate than your home loan interest rate. However, you will need to pay a processing fee of 1-2% of the loan amount.

• Use a third-party service: There are a few third-party services that allow you to pay home loan EMI through credit card. These services typically charge a fee of 2-3% of the EMI amount.

It is important to note that there are some risks associated with paying home loan EMI through credit card. For example, if you miss a credit card payment, you may be charged a late fee and your credit score may be damaged. Additionally, if you have a high balance on your credit card, it may be difficult to qualify for a balance transfer or personal loan.

Now you know can we pay home loan EMI through credit card.

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Can home loan EMI be paid by credit card

? Paying your home loan EMI through a credit card can be a convenient option, offering flexibility and potential benefits such as reward points or cashback.

Can You Pay Home Loan with Credit Card?

It's essential to understand the process and implications before opting for this payment method. 

Here's a step-by-step guide on how to pay housing loan using credit card:

• Before proceeding, confirm with your home loan lender whether they accept credit card to pay home loan EMI with credit card. Not all lenders may offer this facility, so it's crucial to verify the feasibility of this option with your bank or financial institution.

• If your lender does allow credit card payments, familiarize yourself with the terms and conditions associated with this payment method. There may be specific guidelines, fees, or restrictions imposed by the lender or credit card issuer that you need to be aware of.

• Some lenders may offer an auto-debit facility where your credit card is automatically charged for the EMI amount each month. If this option is available, inquire about the registration process and any required documentation.

• Ensure that your credit card has a sufficient limit to accommodate the EMI amount. Since home loan EMIs are typically substantial, it's essential to verify that your credit card limit can cover the payment without exceeding your credit utilization ratio.

• If auto-debit is not available or preferred, you can manually set up standing instructions on your credit card to pay the home loan EMI each month. Log in to your credit card account online or contact your credit card issuer to initiate this setup.

• On the due date of your home loan EMI, the amount will be debited from your credit card according to the payment instructions you've provided. Ensure that you have sufficient funds available in your credit card account to avoid any payment failures or penalties.

• Regularly monitor your credit card statements to track the EMI payments and ensure accuracy. Keep records of the transactions for future reference and reconciliation with your home loan statements.

• While paying your home loan EMI through a credit card offers convenience, consider the associated costs such as interest charges, processing fees, or any other applicable fees.

• Compare these costs with the potential benefits, such as reward points or cashback, to determine if this payment method is financially advantageous for you. 

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