How Does EMI Work in Case of Best Credit Cards

How Does EMI Work in Case of Best Credit Cards

Christmas and New year celebrations are almost at your doorstep. The retailers are going to cash in big during this season with some amazing offers and discounts on products. The year is ending, this is probably the best time for buyers to utilize their hard-earned money to fulfill their wishes. This is the best time of the year to use your credit card. The best credit card is the one that suits your lifestyle and is affordable at the same time. If you apply credit card online during this season, chances are you will get some mind-blowing deals on rewards and cashbacks.

There are certain occurrences where you want to buy a commodity, but it exceeds your budget by a huge margin. It could be that car you’ve been eyeing, that fancy mobile phone you have saved in your cart or that pending trip you’ve been waiting for. This is where your credit card comes in, it can help you touch that financial limit you’ve been craving for, those wings you are trying to spread.

Credit card gives you the power to buy, but as the famous movie line goes “with great power comes great responsibility”, the responsibility of paying back the borrowed sum in stipulated time also comes with it. If it were not for EMIs, Credit cards would have become a headache. EMI plans have made credit card transactions so smooth and seamless that today, we do not give a second thought before using this plastic card.

Most of the online shopping websites give you the option of converting your purchase amount into EMIs through various EMI schemes, which makes it easy for you to choose and buy products that might be a little out budget for you in a particular month.  


An EMI calculator helps you to calculate your EMI and view the repayment schedule. The interest and service tax are added to the monthly payment, although the interest varies from bank to bank. There are multiple options when it comes to repayment tenure. Payment can be made in 24, 18, 12, 9- and 6-months installments. Today, it is very easy to calculate EMIs because, Online EMI calculators are available where you can instantly calculate your EMIs, interest rate and tenure. If you want to calculate EMI online, just log on to and go to the EMI calculator tab, it is so easy and smooth you won’t believe your eyes!


An EMI scheme is issued by Banks and lending institutions that has a collaboration with the e-merchant.

You opt for an EMI scheme, for which the banks pay on your behalf to the merchant.

Then, the bank collects the amount from you in monthly installments with a tenure option that suits you best.

Banks charge interest rate on the amount you have borrowed from them, this is how the banks earn for the services they provide.

Banks and lending institutions also charge you with a processing fee on the amount borrowed.

A prepayment penalty may also be charged in some cases where you decide you end your installments by paying it off earlier than the due date.

The interest free period is about 40-45 days which includes your billing cycle and the grace period.


Choose EMI options that do not have any processing fee or the fee is very low.

Read all the terms and conditions carefully before opting for a credit card.

Keep a watch on due dates, to avoid late payment charges and enjoy interest holidays.

Try to choose a lower tenure option, lower tenure means less interest.

If you have surplus cash in your bank account then you have an option of paying for a commodity in full in one single payment, but in case you are short on your budget then going for an EMI option is the best option as it gives you more time to arrange the amount and gives you the flexibility of looking for a better option based on your choice. In case of credit cards, you always have an interest free period of 40-45 days so if you arrange the funds in that time you can easily handle credit cards and you won’t have pay extra for your purchases. If you want to check out some amazing offers on credit cards, you can go to our Credit card page, filter and sort the cards according to your preferences. To check click here.

Till then…happy buying!


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