How to Convert Credit Card Bill into EMI

Many banks are now allowing their customers to pay for large transactions with their credit cards over time in equal monthly installments (EMIs). The procedure is identical to that of every other loan. A credit cardholder may use their card to make a large purchase and repay the loan in EMIs over a fixed period of time. It is more convenient for consumers because the whole payment does not have to be done at once and is spread out over a period of time. This allows the customer a longer period of time to repay the credit. Although a few banks provide no-cost EMIs (with no interest), the majority of banks charge some interest. The interest rate, however, is lower than the card’s finance fee. Banks can charge a small processing fee to convert the outstanding amount on your credit card statement into EMIs in some cases. 

How to convert credit card bill into EMI

You can turn the outstanding amount on your credit card statement into EMIs in two ways. You have the option of converting your purchase into an EMI at the time of purchase or converting your remaining balance into an EMI later. You can do so by using net banking to access your account and selecting smart EMI options for credit cards. Alternatively, you may go to the nearest branch and ask a bank representative to assist you in converting your unpaid debt into EMIs. Your credit score decides whether you are eligible for smart EMIs.

How does EMI conversion works on credit card

The EMI scheme works by turning your purchase or bill into a loan that you can pay back over a fixed period of time. The cumulative sum of your credit card debt is split into equivalent payments, which you must pay over time. This means that instead of repaying the whole credit sum, you can pay it back in installments.

These payments are determined using the principal sum and the EMI interest rate paid by the bank. Few banks have no-cost EMIs, which means that there is no interest paid on the loan. If the period is longer, the interest rate is higher.

To help you understand things better, most banks have a credit card emi calculator on their websites where you can figure out how much EMI you’ll have to pay for the loan.

Fees and charges for paying credit card bills via EMI

The following are some of the most common fees associated with paying credit card bills through EMIs:

  1. Interest levied on the bill – This amount varies by credit card issuer and is related to the term of the loan: the longer the term, the higher the interest. The rate of interest is also determined by the credit card holders’ risk assessment.
  2. Processing fee – This varies by card issuer; some charge no processing fees, while others can charge an upfront loan processing fee depending on the bill amount (converted into EMIs) or a fixed amount.

It is recommended that you do the math before choosing an EMI option for your credit card bill to ensure that you are aware of the total extra charges you will incur. A credit card emi calculator comes handy to do so.

Advantages and disadvantages of paying credit card bills on EMI

You should only use the EMI option if you are unable to pay off your entire credit card bill by the due date due to cash flow issues or a lack of funds. This is because failing to pay credit card bills on time would result in increased finance charges of about as well as a hefty late payment fee. This can have a negative effect on one’s credit score, which can have a negative impact on potential credit.

Banks’ interest rates on loan repayment through EMIs are substantially lower than finance charges imposed on unpaid credit card balances. Converting a credit card bill to an EMI, on the other hand, is an expensive choice since you do have to pay interest on the credit card bill. As a result, converting credit card bills into EMI on a regular basis is not recommended, as this alternative will deplete your savings over time.

Points to remember when paying credit card bills on EMI

  1. Use the EMI option if you are certain that you will be able to make the credit card online payments on time. If you don’t pay your credit card bills on time, your credit score will suffer.
  2. To be able to turn the outstanding amount on your credit card statement into EMIs, make sure you have enough limit on your credit card. If you don’t, your appeal for an EMI conversion will be refused. 


Using EMIs to pay a credit card bill has a minor effect on your credit score, which would otherwise suffer if you failed to pay your credit card dues on time. As a result, for credit cardholders who find it relatively difficult to clear the dues at once and on time, this is a convenient choice.