Turning a large card purchase into monthly instalments with interest.
After a purchase, most banks let you convert it into an EMI over 3 to 24 months. Interest is charged on the reducing balance, often 12% to 24% a year, plus a processing fee and 18% GST on the interest and fee.
The converted amount blocks that much of your credit limit until it is repaid. Closing the EMI early usually carries a foreclosure charge.
Short reads that explain how it works before you decide.
GuidesNo-Cost EMI: What It Really Costs You, With a Worked ExampleNo-cost EMI is not a trick, but it is rarely free. Here is where the money goes: the discount you give up, the processing fee, and GST on the interest, worked out on a Rs 30,000 phone.Read the guide →Automatically organise your spending, track expenses and understand where your money goes.
