Easy EMI: Converting Purchases to Manageable Monthly Payments

An easy EMI option allows you to pay large amounts in small installments regularly over a set period. You can do this with credit cards, debit cards, and merchant partnerships. Multiple types of EMIs are available across the Indian market, such as no-cost EMI, standard EMI, or brand-subsidized EMI. Use a Personal Loan EMI Calculator to check how much you would pay in comparison to the cost of borrowing. 

Quick Reads

• Easy EMI breaks a big payment into smaller payments for a set period. 

• This lets you make high-value purchases without paying in full upfront.

• Credit and debit card-based EMI options differ and may carry hidden costs, which need to be carefully reviewed. 

• Always compare Easy EMI cost with the cost of borrowing to make the best choice. 

When making big purchases, Easy EMI can protect your savings from being used all at once. It converts a large one-time payment into fixed monthly installments spread over a defined period. However, the term “easy” here doesn’t mean lower cost, but easier ways to make big payments. 

The Easy EMI option is available through credit cards, debit cards, and merchant partnerships. The mechanics, cost, and availability are very different from platform to platform. Knowing how EMI works, the options available, and hidden costs can help you manage them better.

When you are making a purchase via retail or online stores, select the easy EMI option if available at checkout. Once approved, you will get to select tenure options, which commonly are 3, 6, 9, or 12 months. After selecting a tenure, your transaction is completed.

With a credit card EMI, the amount is adjusted against your credit limit. The EMI is added to your credit card bill each month. For a debit card or bank-linked Easy EMI, the amount becomes a small loan that you can repay. 

Easy EMI plans are offered in different ways across India. 

Credit card EMIs reduce the credit limit you can use. For example, if you spend ₹45,000 on a card with an ₹80,000 limit, your available limit may fall to ₹35,000. As you repay the EMIs, the available limit is restored gradually.

Using a large portion of your credit limit across multiple EMIs can increase your credit utilization and may affect your CIBIL score for personal loan eligibility and overall credit profile.

• Advantages: Quick approval for existing cardholders, no separate loan application, broad merchant acceptance, and the option to convert some purchases into EMIs later.

• Disadvantages: Reduces your available credit limit, high utilization can affect your credit profile, and missed EMIs can quickly add to your outstanding dues.

Debit card EMI works a little differently. The amount is converted into a separate loan linked to your bank account, so it does not use your credit limit. 

However, not every debit card is eligible. Availability depends on the bank, and there may be fewer stores offering this facility. It may also offer a lower spending limit than credit cards. 

There may sometimes be hidden costs on EMI offers. An EMI offer may come with processing fees or other charges, even when the interest rate is advertised as zero. For example, a 2% processing fee on a ₹1 lakh purchase would cost ₹2,000. 

Some programs may charge 2 to 5% for closing an EMI early. In this case, the easy EMI may cost you more to exit. Also, using an easy EMI option is only available for purchases of at least ₹5,000 to ₹10,000. 

Tenure also matters because sometimes there is a limit on it. When you are offered a maximum 6-month tenure when 12 months may have been more affordable, this makes the EMI higher. Additionally, the GST charged on the processing fee adds to the cost. 

The easy EMI option requires comparison. It is important to check the product’s cash price elsewhere. You should use a personal loan EMI calculator to know how much you would pay for EMI as compared to the cost of borrowing the money instead. 

Both Easy EMIs and Personal Loans allow you to convert large payments into small monthly payments, but they cater to different needs and come with their own advantages and limitations. 

If you have multiple easy EMIs active, then you need to learn how to manage them. Begin by noting down every EMI you are currently paying. While listing, specify the merchant, amount, monthly payment, and due date for each. 

Now calculate the total monthly EMI burden by adding all EMI obligations to other obligations. Prioritize closing big EMIs early where there are no foreclosure charges. 

Do not add new EMIs before you clear the existing ones. Also, set calendar alerts for all the due dates so that you do not miss any payment. Multiple small EMIs can sometimes be grouped into a single instant personal loan with a single due date.

The Easy EMI option makes purchasing costly products easier by removing the need to pay the entire amount upfront. It is important to first know the cost you’d be paying and compare alternate options to avoid any surprises. 

For flexible financing beyond merchant-specific EMI, Finnable offers a personal loan of up to ₹10 lakhs with transparent interest rates from 16% to 30.99% p.a. on a reducing balance. The fully digital process takes under 60 minutes, with tenure options from 6 to 60 months. Prospective borrowers can check their loan eligibility online before applying.