Credit card EMI charges
Interest Rate:
🔷Credit card EMI interest rate is dependent on the credit card, relationship with the bank, etc.
👉Usually, interest rates on merchant EMIs are lower than that on the post-purchase conversion.
👉Hence, while opting for this option you should always look for the interest rate charged by the provider.
👉To do so, you can compare the interest rates of multiple banks.
👉You can opt for the option that suits your repayment capacity the best.
🔷Processing Fees:
👉Credit card providers may also charge a processing fee to convert transactions into EMI.
👉It can range from 1% to 3% of the transaction amount.
🔷Prepayment Charges:
👉Banks might charge you a pre-payment fee if you wish to clear the dues before the end of the tenure.
👉You can expect to be charged about 3% of the outstanding amount at the time of clearance.
👉Moreover, you might have to pay off the interest on a pro-rata basis as well.
👉Therefore, for future reference, it is important to consider prepayment charges while converting your purchases into EMIs.