Know How Does Credit Card EMI Work | AU Small Finance Bank
Gateway to Digital Life. Download AU 0101.
ApplyNow_Products

How does Credit Card EMI Works?

    The EMI or Equated Monthly Instalment facility is an excellent way to make larger purchases more affordable. But what if the product you want to purchase is unavailable with the EMI facility? Well, you can purchase it with your Credit Card and convert the payment into EMI. 

    But what is Credit Card EMI? Here’s everything you should know-

     

    How does Credit Card EMI Work?

    Normally, when you buy anything using a Credit Card, you are required to repay the dues to the Card provider in the subsequent month. But with EMI on Credit Card, you can convert the big-ticket purchases into monthly EMIs so that you don’t have to repay a lump sum amount at once. For instance, AU Small Finance Bank’s Xpress EMI facility allows converting transactions worth INR 2000 or more into easy, affordable EMIs based on the tenure you choose. 

    This facility is available in AU Credit Card range, including Zenith, Altura, Altura Plus, and Vetta and LIT Credit Cards.

     

    Types of Credit Card EMIs Offered by Banks

    Credit Card providers generally offer two types of EMIs- Zero-Interest EMI and Reduced Interest Rate EMI. Here’s what they mean-

    • Zero-Interest EMI

    When you purchase a product on regular EMI, you are required to pay interest for using the facility. But Zero-Interest or No-Cost EMI Credit Card eliminates the interest burden. 

    • Reduced Interest Rate

    The interest charged by card providers on late payments is significantly higher. But with a Reduced Interest Rate EMI, you have to pay a lower interest rate. 

     

    Points to Consider Before Converting Credit Card Bill Payment to EMIs

    Listed below are some important points you should consider before using the Credit Card EMI facility-

    • Every Credit Card does not come with the EMI facility. Even if your card has an EMI facility, it is up to the card provider to approve or disapprove your conversion request. 
    • Credit Cards come with a fixed spending limit. Once payment is converted into EMI, the limit will be adjusted based on the amount spent. 
    • Some card providers charge a processing fee to convert payments into EMIs. However, AU Small Finance Bank does not charge any processing fee for the Instant EMI option available for top brands and retail stores. 
     

    Make Your Purchases More Affordable with Credit Card EMI

    The Credit Card EMI facility is an excellent way to convert larger purchases into easy monthly instalments. So, whether you want to pay for a family vacation, a new smartphone, or a medical emergency, you can use the Credit Card EMI option.

    Also, if you’re searching for the best Credit Card for EMI, AU Small Finance Bank can be an excellent choice. You can take advantage of our Xpress EMI facility on the Credit Cards range to make your payment experience worry-free. Our facility allows you to instantly convert INR 2,000 and above payments to monthly EMIs for tenures ranging from 3 months to 24 months with no documentation and zero processing charges.


Blogs & Articles