Nowadays, people make large purchases with a frequency that causes a tremendous deal of pressure on their wallets. Luckily, credit cards have a solution to this with the latest options to shop on EMI available on credit cards. It helps the consumer to turn their purchase into a more affordable monthly payment, which in turn makes it easier to buy expensive items. In the following guide, you will get to know all about the latest EMI on credit cards, along with the types of offers available for shopping with EMI and how you can make the most out of these.
What does EMI stand for credit cards?
EMI means Equated Monthly Installments. Sometimes if you choose the EMI option on your credit card, you are paying for a purchase in equal monthly installments for a fixed period. This enables you to undertake some financial planning and, at the same time, has some benefits of owning an asset immediately.
How Does It Work?
Purchase Amount: You buy goods and services with your credit card.
Conversion: You please convert this amount into EMIs.
Tenure Selection: Select the amount you wish to borrow to be repaid together with interest over a chosen period, which ranges from 3 months to 24 months.
Monthly Payments: Based on the principal sum, interest rate, and maturity, your bank will determine the monthly installment.
New Trend to Shopping on Credit Card EMI
As of now, several banks in India offer exciting options for shopping on EMI with credit cards:
1. HDFC Bank
EMI conversion is another smooth feature offered by HDFC Bank, which offers an EMI option on its shared credit cards. Anything bought above ₹2,500 can be converted into easily affordable EMIs with a nominal interest rate of 12% per annum. The bank also has special promotional charges for the festive seasons.
2. ICICI Bank
Currently, through the bank’s mobile app or net banking portal, customers can convert their purchases into EMIs instantly at ICICI Bank. The interest rates range from as low as 13% per annum for all tenures, which range from 3 to 24 months.
3. Axis Bank
Easy Payment Plan is one of the flexibilities provided by Axis Bank where customers can convert their high-priced purchases into easy EMIs rather than paying high interest compared to credit card interest rates. Customers have the option of tenures ranging from 6 months up to 3 years.
4. SBI Card
Similar to Flexipay, SBI Card offers an opportunity to convert your transactions into EMIs at appealing interest rates of 14% annually. Currently, one needs to transact a minimum value of ₹3,000, which is reachable for most consumers in the market.
5. Citibank
Citibank has a specific scheme called ‘Cash Conversion,’ which helps customers turn their credit card purchases into EMIs during certain periods free of charge along with no processing fee. Interest rates range from 12%, which applies per annum.
Benefits of Shopping on EMI
Shopping on EMI using your credit card comes with several advantages:
1. Budget-Friendly
Constant spending on credit means having to pay a set amount of money for a certain period of time, and this will not burden your pocket in a given month.
2. No Need for Collateral
In fact, it is an unsecured form of credit instrument, which means that you do not have to offer any security as in the case of personal loans or secured loans.
3. Flexibility in Tenure
Based on your ability, you can select the program duration that is most reasonable and feasible, such as three months or two years, flexible repayment tenures.
4. Build Credit History
Timely payment on EMI score changes your credit history and can be beneficial in case of future credit requirements.
5. Approvals within the shortest time possible Learning of decisions as they happen
These options are convenient because most banks have their apps or websites where you can apply for the conversion of purchases into EMIs with an instant approval.
Wisdom for selecting the most suitable credit card for EMI
When considering the latest options to shop on EMI on a credit card, it’s essential to choose wisely:
1. Compare Interest Rates
Interest rates provided by different banks and on different offers differ a lot; thus, you should compare them.
2. Look for Hidden Fees
In some cases, the banks take processing fees or prepayment penalties if a customer chooses the EMI plan. In any case, make sure that you read the terms and conditions of the used product.
3. Evaluate Your Spending Habits
Pick a credit card that you can patronise frequently; hence, meet the conditions for earning the bonuses or cashback that come with it.
4. Check Eligibility Criteria
Make sure you don’t apply for any credit card before you meet all the requirements provided by the lender for that specific credit card.
Conclusion
If you are looking for methods to purchase big-ticket items while still trying to avoid some severe implications on your budget, then looking for new methods to shop on EMI on a credit card is a good approach. Taking into consideration numerous freely accessible facilities of various banks with different interest rates and flexible methods of repayment, shopping has never been easier and cheaper.
Knowing how these options operate and making the right decisions help you derive the benefits of owning new products without straining your pocket.
Key Takeaways
New options for buying things online on EMI on a credit card are convenient and useful to manage big expenses.
Different banks provide reasonable interest regimes and conditions for the repayment of the credit.
These should always be compared, and the terms should be read well before subscribing to any service.
If you use all these options appropriately, you stand to gain big savings while you go shopping!
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