What is the Interest Rate on Credit Card EMIs?

Last Updated : Oct. 20, 2020, 5:40 p.m.

When you make a transaction with your credit card, it provides you the option of paying this amount later within an interest-free period. But what if you want to make a big purchase with your credit card and have this feeling that you won’t be able to pay this amount on the due date? Well, in this case, you can convert your big purchases into easy monthly installments. Top banks like State Bank of India (SBI), HDFC Bank, Kotak Mahindra Bank, Standard Chartered Bank provide the option of Credit Card EMI to their respective credit cardholders.

A customer cannot convert each transaction into monthly installments. A credit cardholder needs to make a transaction of a particular amount or more to opt for the Credit Card EMI. This amount tends to change from one bank to another. For example, if you have an SBI Credit Card, you can convert any transaction of INR 500 or above into monthly installments, whereas in the case of Standard Chartered bank, this minimum amount is INR 5,000. But here is one important thing to know before converting your purchases into EMI – What is the Interest Rate on Credit Card EMI? The reason being banks charge interest on the amount you want to convert into EMIs, and it changes from one bank to another.

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So, what are the interest rates of different lenders when you opt for a Credit Card EMI? In this post, we will discuss interest rates and several features of Credit Card EMI – Processing Fees, Tenure, Foreclosure Charges, Minimum Amount that you can convert into EMIs, etc.

Credit Card EMI Interest Rates of Different Lenders in India

As we said earlier, banks charge interest on the amount you want to convert into easy monthly installments. Credit Card EMI Interest Rates tend to change from one lender to another and affect your EMI amount. The higher the interest rates will be, the higher will be your repayment amount and vice versa. So, it is necessary to understand the interest rates before converting your big purchases into EMI.

On average, credit card EMI interest rates range from 12% to 20% per annum. Also, the interest rate may change according to the repayment tenure you are choosing. The interest rate on credit card EMI may be lower on choosing a shorter period as compared to a longer one. Banks also charge a fixed processing fee, which depends on the amount which you want to convert into EMIs. It varies from one bank to another.

We are showing Interest Rates on Credit Card EMI Facility offered by top lenders such as SBI, HDFC Bank, Axis Bank, Standard Chartered Bank and Kotak Mahindra Bank. Do check!

Some banks also offer a No-cost EMI facility on their credit cards with which customers can repay the amount in monthly installments without paying any interest on it. But these offers are usually valid on certain products and when you buy it from a specific retailer or platform. The processing fee will be applicable in this case too. But you can save a lot of money if you opt for the No-cost EMI facility.

Now that you have known about the interest rate of different lenders, it’s time to talk about the features of different credit card EMI facilities of top banks. The first of them is the SBI Flexipay facility. Let’s know more about it!

SBI Flexipay Facility

SBI Flexipay Facility allows SBI Credit Card holders to convert their big purchases into easy monthly installments that can be as low as INR 52 on every INR 1,000. An individual can convert any transaction of INR 500 or more into Credit Card EMI at an interest rate of 22% per annum or as per the applicable offer. However, the minimum booking amount is fixed at INR 2,500 to opt for the Flexipay facility. Thinking about how many months you will get to repay the amount? Well, you can choose to repay over a period of 6, 9, 12, and 24 months according to your convenience.

Remember you can only convert a transaction into credit card EMI within 30 days of you making that transaction. You will not be able to opt for Flexipay after this period. You will need to pay the one-time processing fee of 2% of the overall amount with a minimum of INR 249 that can be as high as INR 1,500. If you want to pay the overall amount before the fixed tenure, you will need to pay a foreclosure fee of 3% of the outstanding principal amount.

HDFC SmartEMI Facility

HDFC Bank also allows its credit cardholders to convert purchases of Electronic Items, Travel, Apparels, etc into easy monthly installments with its SmartEMI facility. Remember that Gold and Jewellery purchases cannot be converted into EMIs. The minimum amount that a customer can convert into Credit Card EMI is fixed at INR 2,500. The reward points that you have earned (if any) from the transaction will be reversed if you opt for the SmartEMI facility.

HDFC Bank offers a repayment tenure of 9 to 36 months from which customers can choose. There will also be a one-time processing fee of 1% of the loan amount with a minimum of INR 350, which you will need to pay. In case you want to close a loan before the fixed tenure, HDFC Bank will charge 3% of the principal outstanding balance plus GST. Customers cannot convert their transactions into Credit Card EMI after 60 days of making a particular transaction.

Axis Bank Credit Card EMI Facility

With the Hello-EMI facility from Axis Bank, you don’t need to worry about your next big credit card purchase as you can convert any transaction of INR 2,500 or more into EMI. Axis Bank Credit card holders can enjoy the convenience of paying the amount back with Credit Card EMI at an interest rate of 1.5% per month. You can convert your credit card purchase into EMIs for 6, 9, 12, 18 or 24 months. A customer can convert a purchase of as high as INR 5 lakh (per transaction) into EMI.

However, if you want to opt for Axis Bank Credit Card EMI, you will need to pay a one-time processing fee of 1.5% of the transaction or INR 250, whichever is higher. Also, remember to convert your purchase into EMI within 60 days of making that transaction, otherwise, you will not be able to convert it. You can do it via Internet Banking, Mobile Banking, Calling Axis Bank Customer Care or at Axis Bank ATMs.

Standard Chartered Bank EMI Facility for Credit Card Shoppers

If you have a Standard Chartered Bank Credit Card and want to convert your big spendings into monthly installments, opt for Kuch Bhi on EMI. With affordable interest rates starting from 1.08% per month, you can opt for this Credit Card EMI facility for a flexible tenure of 6 to 48 months according to your convenience. You can convert any transaction of INR 5,000 or more into EMI via Online Banking, Phone Banking, SMS, or at the time of purchase at Retail Outlets or e-commerce platforms.

Customers will need to pay a flat processing fee of 1.5% of the overall transaction amount plus applicable GST charges. In case you want to make a prepayment, you can do it by paying a pre-closure charge of 3% plus GST. Apart from these two, the GST is also applicable on the interest amount every month.

Kotak Mahindra Credit Card EMI Facility

If you want to make a high-ticket purchase without any down payment, you can use your Kotak Mahindra Credit Card . After making the transaction, you can convert this into EMI later or at the time of purchase with the Credit Card EMI facility. The best thing about this facility is you don’t need to pay any processing fee. Kotak Credit Cardholders can enjoy the facility of Instant EMI on more than 250 brands.

The interest rate ranges from 12% to 18% per annum and changes according to the repayment tenure ranging from 3 to 36 months. The interest rate on your credit card EMI facility will be lower if you choose a shorter tenure. Kotak Mahindra Bank also offers No Cost EMI on a few leading brands.