Credit Card EMI: Meaning, Working Process and How to Convert 

credit card emi

A credit card EMI facility is an excellent solution for managing your big-ticket purchases without straining your budget. Most credit card issuers allow you to convert your shopping into affordable instalments for a suitable tenure. So, you can continue shopping even when you have budget restrictions. 

Some issuers allow you to avail of no-cost EMIs, which means you can pay in instalments without interest. By knowing the benefits and what to expect when availing of this facility, you can make the most of your card and money.

How Does a Credit Card EMI Facility Work

Converting your purchase to budget-friendly EMIs starts with buying your favourite product using your credit card. At the time of payment at the store or on the payment page of the online store, select any tenure option. The final step to complete the transaction is to confirm your card’s details, payment amount, and chosen tenure. 

Generally, issuers offer tenure between 3 months and 24 months. If you want to decide which tenure is the best option, simply use an EMI calculator. Wondering why? After all, you can divide your billing amount and applicable interest into an affordable EMI that fits your monthly budget.

Whether you need to get the latest gadget or upskill yourself by completing a course, the EMI facility simply works wonders. However, check if your card is acceptable at the specific store to enjoy the benefits of the EMI facility.

All you have to do is compare various credit card issuers and choose one offering the best benefits. Meet their required eligibility criteria, and you’re good to go!

Factors to Consider When Choosing the EMI Facility

To help you choose the best credit card EMI options, know these key factors that affect the EMI plan. 


Before making the purchase, checking with your issuer is essential to know whether the EMI option is available on your card and if you are eligible. Since the credit card EMI facility depends on your credit history and score, it is up to the issuer to decide if you can opt for this. 

Interest Rate

Most credit card issuers charge nominal interest rates for this facility, but these rates vary from one issuer to another. It also depends on your chosen tenure. As the cardinal rule goes, the longer the tenure, the higher the interest rate.

Repayment Tenure

Most issuers have timelines starting from 3 months to up to 24 months. If you opt for a longer tenure, your EMI will decrease subsequently. However, go with this option only if you’re comfortable paying a higher interest in the long term. Yes, you read that right. That’s the catch here!

Processing Fee

You may have to pay these one-time charges for converting your credit into EMIs. It’s best to check your issuer’s terms, conditions and processing fee before choosing the EMI option to avoid any unexpected financial surprises. 

Credit Limit

Your available credit limit is another critical factor that decides whether or not you can opt for EMI. If you don’t have a sufficient credit limit, your payment will decline. Thankfully, you can efficiently replenish your limit by paying your bill on time and in full or paying your existing EMIs before applying for new EMI options. 


Foreclosure refers to paying your credit card EMIs before the stipulated tenure, which saves you from paying interest. So, if your issuer allows foreclosure and you have funds available, it may be a financially smart option. 

However, some issuers may charge foreclosure fees. Consider the pros and cons and choose a feasible plan without overburdening your finances.

Benefits of EMI Facility on the Credit Card

Wondering if you should opt for credit card EMI? Consider these benefits you can enjoy:

  • You can buy numerous products which may not be possible to purchase by simply relying on your monthly budget.
  • It allows you to manage your daily spends and budget effectively.
  • Multiple tenure options give you the flexibility to choose the ideal EMI amount that fits your pocket.
  • With the no-cost EMI facility, you can pay your bills in instalments without any additional charge.
  • You can use it for online as well as offline shopping purchases.
  • Paying regular EMI gives you the opportunity to build your credit score gradually.

Whether it’s online or offline shopping, the EMI option is available on all your One Credit Card purchases. In addition, you can also enjoy exclusive rewards on the top two spending categories coupled with shopping and dining offers.

Converting your purchases into affordable EMIs is easy, and you can track your bills on the powerful One Credit Card app. This allows you to better manage your expenses without digging into your savings. Apply now to get one of the best credit card EMI options for a better shopping experience.