What Credit Card EMI & How Does It Work?

By OneCard   |   July 06, 2023

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Want the latest smartphone or just saw a gorgeous furniture piece for your house? You might not always have the funds to pay upfront.. This is where credit cards can help! With credit cards you can divide your expenses into convenient and affordable payments and get the luxuries you desire. Additionally, you can also choose a No-cost EMI, which allows you to pay for the entire product in instalments without additional costs. So if you are wondering about how credit card EMIs work, this post is just for you!

What is a Credit Card EMI?

An EMI (Equated Monthly Instalment) on a credit card is a payment option that enables cardholders to break large purchases into manageable monthly payments. This choice is convenient when buying expensive items like electronics, appliances, or furniture. The EMI option provided by credit card issuers usually includes an interest rate and processing fee that vary from one provider to another. However, sometimes customers can get the "no-cost EMI" option—offered by credit card issuers—It’s an attractive option because it eliminates any additional interest or fees on their EMIs.

How Does Credit Card EMI Work?

With credit card EMIs, you may break up a large purchase into manageable monthly instalments. Additionally, you can also turn a credit card purchase into an EMI after you've made the purchase. Your credit limit, credit score, and the terms and conditions of the offer are taken into account by the card issuer when determining the amount and term of the EMI.

Imagine using your credit card to purchase something for Rs. 50,000. If the lender offers a 12-month EMI plan with a 12% annual interest rate, you have to pay a fixed amount each month for the duration of that plan. Therefore, you may better manage your resources and make an organised effort to pay off the due in this way.

It's important to know that some issuers might charge a processing fee when turning your transaction into an EMI. So, before choosing the EMI option, it's essential to read the offer's terms and conditions.

Things to Know While Applying for the Credit Card EMI Option

One practical way to manage your money and make payments for your purchases in instalments is to convert your credit card payment to an EMI. So, before we learn how to convert credit card bills to EMI, here are some things to consider:

Check the EMI Option's Availability:

The EMI option isn't offered by all credit cards, so it's necessary to confirm whether your credit card issuer offers it.

Know the Terms and Conditions:

Before converting your credit card bill, ensure you are aware of the interest rate, processing fee, and repayment period of the EMI option.

Sufficient Credit Limit:

It is important to maintain a certain limit that would cover the total amount of the purchase. It is because that amount will be blocked and gradually released as you pay the EMIs.

You may now make an informed choice when applying for the credit card EMI option and prevent any surprises in the future!

ALSO READ: How to Increase Your Credit Card Limit?

How to Convert Credit Card Payments to EMI?

It's easy to convert credit card payments to EMIs. You can do it online or by contacting the card issuer. Let's see how you can convert credit card bills to EMIs.

Confirm eligibility:

Before choosing the EMI conversion, inquire about the requirements with your credit card company. Your eligibility may be based on several factors such as your payment history.

Select the tenure:

Choose the length of your EMI instalments once qualified. For example, depending on your card issuer's policies, the tenure may be three months to one year or even more.

Choose the purchase:

After deciding on the tenure, select the item for which you wish to convert the payment to EMI. Anything from shopping to utility bill payments can be converted.

Pay the EMI:

To avoid late payment fees, pay the EMIs on time each month. Your monthly credit card bill will include the EMI, which you can pay just like any other bill.

No Cost EMI:

Some issuers have a "No Cost EMI" credit card option, which exempts you from paying interest on the amount of the EMI. However, this option might come with some processing fees or other costs.

Advantages of Converting Credit Card Bill to EMI

Here are some benefits of converting your credit card bill to an EMI:

Manageable Payments:

You may manage your money and budget more efficiently by using credit card EMIs to pay for your purchases in instalments. You can divide the payment into more manageable portions rather than paying the entire sum at once. This can be especially useful for high-ticket purchases.

No Additional Charges:

You won't have to pay additional interest or fees on your EMIs if you choose the no-cost EMI option. You can spread out your payments without paying any fees. However, you might have to pay an interest rate and processing fee if you choose a regular EMI plan.

Improved Credit Score:

Making on-time EMI payments can improve your credit history and score. It assures lenders that you are a responsible credit user.


Depending on the credit card provider, you can select the EMI amount and payback period that works best for you. This may give you more freedom when handling your money and making payments. You can also choose a larger EMI amount and a shorter payback period that matches your budget.


In conclusion, credit card EMIs are a convenient choice to help you budget and make instalment payments. When converting your credit card bill to EMIs, you can make an educated choice if you know how credit card EMIs work and the various alternatives available, such as no-cost EMI credit cards. In addition, credit card EMIs can be a valuable tool to raise your credit score and ensure financial security, provided you make timely payments.

EMIs are very easy with OneCard. To convert your purchase to an EMI, simply, select the transaction you wish to convert into EMI, and choose the repayment duration. That's it! Your transaction will be converted to EMI, and you'll receive a confirmation notification via SMS and email.


**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.