Is no-cost EMI really free?

The interest is absorbed by the merchant, but processing fees and GST on those fees still apply. Always check for any upfront deduction before agreeing.

Can I prepay credit card EMI?

Yes, but most issuers charge a 3% foreclosure fee. Run the math — often it's worth prepaying after 6+ months even with the fee.

Does converting outstanding to EMI hurt my credit score?

No, but missing the new EMI does. Conversion can actually help by reducing credit utilization on the card.

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Loans

Credit Card EMI Calculator

Find the real cost of credit card EMIs after processing fees and GST.

Inputs

Purchase / outstanding

₹1,000₹1,00,000₹1,00,00,000

EMI interest rate

0%Cards: 12–24% typical36%

Tenure

3 mo1236 mo

Processing fee

0%Plus 18% GST5%

Real cost

Monthly EMI

₹8,979

Total interest

₹7,745

Total cost

₹1,10,105

Upfront deductions

Processing fee₹2,000

GST on fee (18%)₹360

Total upfront deduction₹2,360

Net amount you receive₹97,640

Total

₹1,10,105

Principal₹1,00,000

Interest₹7,745

Fees + GST₹2,360

Credit card EMI — beyond the headline rate

Most credit card EMIs advertise rates of 12–15%, but the true cost includes a 1–3% processing fee deducted upfront, plus 18% GST on that fee.

Many cards convert your existing outstanding into EMI at much higher rates (18–24%). Always compare against a personal loan at ~11% before saying yes.

Credit card EMI is convenient but rarely the cheapest. Use it only when you have no other liquidity option.

True cost formula

Total = (EMI × n) + (Processing fee × (1 + GST))

EMI uses standard amortization at the card's EMI rate.
Processing fee is typically 1–3% of the converted amount, deducted upfront.
GST at 18% applies on the processing fee.
Net disbursement = Amount − Processing fee − GST on fee.

Example: ₹1L at 14% for 12 months, 2% fee

Amount: ₹1,00,000
EMI rate: 14%
Tenure: 12 months
Monthly EMI: ~₹8,979
Total interest: ~₹7,748
Processing fee (2%): ₹2,000
GST on fee (18%): ₹360
Effective annual cost: ~17.4%

Headline 14% EMI is actually ~17%+ once fees and GST are included. A personal loan at 11% would have cost ~30% less.

Frequently asked

When credit card EMI makes sense

1No-cost EMI offers from merchants where seller absorbs interest.
2Short-tenure (3–6 month) emergencies with quick payoff.
3Promotional 0% offers on big-ticket purchases.
4Never use it for routine spending — it normalizes overspending.

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