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Know the Procedure to Convert Purchases into EMIs

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The introduction of Credit Card has helped its holders to purchases things on the go without thinking twice, which otherwise was not easy previously without having sufficient cash in hand.

Many banks and financial organizations have offered its customers an option to convert their purchases into equated monthly instalments (EMIs), which means that the customer has an option to purchase for the goods and services bought today using the credit card to repay in equal monthly instalments over a stipulated period.

Know the Procedure to Convert Purchases into EMIs
 

Conversion of purchases into EMIs will be helpful, if the purchase value is very high and if it is done through a credit card. Whenever the purchase amount is expensive, it is better to go for EMI option, as repayment can be done in easy monthly instalments which otherwise will make a big hole in your pockets.

Let's know and understand the Procedure to Convert Purchases into EMIs.

Procedure to Convert Purchases into EMIs

Procedure to Convert Purchases into EMIs

Usually, different banks will have different procedures through which customers can convert their purchases into EMIs. But the standard procedure is the one given below:

  • Making a Purchase: The customers will purchase goods or services using the credit card. If it has to be converted into EMIs then it should be equal to or above a specific value which is set by the credit card issuer.
  • Once you have made a purchase, place a request with your respective bank to have the purchase converted into easy equated monthly instalments.
  • The bank will calculate and fix the interest rate which will be levied on the customer on their EMI.
  • The customers will have an option to opt for tenure through which they will be comfortable to pay for their purchased goods/services.
  • The EMIs paid by the customers will be charged to their credit card account for the convenience of payment.
  • Most of the banks do charge a processing fee during the initial EMI transaction. In this way, your purchases are converted into equated monthly instalments (EMIs).
Advantages of Converting Purchases into EMIs
 

Advantages of Converting Purchases into EMIs

Flexible Repayment

By opting for purchases through EMIs, the customers will get the flexibility to repay for their purchases easily over some time say 3 months or 6 months or 9 months and so on. The burden of repayment will be reduced on the customers part, making it easy on their pockets.

Advantages of Converting Purchases into EMIs

Advantages of Converting Purchases into EMIs

Lower Rate of Interest

Most of the banks and financial institutions which provide the opportunity to convert purchases into EMIs do offer lower interest rate which is affordable.

Usually, EMIs do carry a certain set of interest and it will be mostly low for purchases which are converted into EMIs. Sometimes, the banks may not charge any interest rate on your purchase, irrespective of the purchase value.

Advantages of Converting Purchases into EMIs

Advantages of Converting Purchases into EMIs

Zero Paperwork

The conversion of purchases into EMIs involves very less or zero paperwork, which shows greater convenience of paying for expensive purchases. The customer need not have to face any hassles concerning the submission of documents and related issues.

Advantages of Converting Purchases into EMIs

Advantages of Converting Purchases into EMIs

Better Financing Option

Going with an option to convert purchases into EMIs will reduce the burden on the part of the customer. The customer will have an option to repay the debt over a while, instead of paying in one shot which at times may be a difficult thing to do, thus helping credit cardholders to manage their finances in a better way.

GoodReturns.in

Read more about: emi credit card
Story first published: Thursday, September 3, 2020, 21:13 [IST]
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