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30 AUGUST, 2021

Credit cards are gaining tremendous popularity among users in India. Most of its popularity stems from the availability of multiple bill payment options. With just the swipe, one can easily make an instant purchase transaction and repay the outstanding bill at the end of every month. Also, customers can use credit cards to make big purchases and make payments in affordable EMIs. 

One can also convert the credit card balance into affordable EMIs when the mounting bill becomes burdensome. Having EMIs on credit card bill payments reduce the liability. The best part is that it has minimal impact on the credit score, which would take a hit if defaulted on making credit card bill payments

How does it work? 

When you convert your credit card outstanding dues into equated monthly instalments, your credit card bill gets divided into EMIs, which you will have to pay within set repayment tenure. The equated monthly instalments (EMIs) include the principal loan amount or outstanding bill, interest rate, and loan tenure. You will have to make a repayment every month until the credit bill is paid in full.

It is worth noting that your credit card issuer may temporarily block or reduce your credit limit by an amount equal to the purchase amount converted into EMIs. Your credit card limit will automatically increase and reflect on your credit card account when you make EMI payments. Your credit limit will increase by the amount equal to the EMI paid.

For instance, if your credit limit is Rs. 100,000/- and make a purchase worth Rs. 80,000/-, then your current credit limit is Rs. 20,000/- after you convert your credit card outstanding dues into EMIs.

How To Convert Your Credit Card Bill Into Emis?

There are three ways through which you can convert your credit card bill into EMIs.

Internet Banking 

If you have internet banking, you will need to log in to your account with your user ID and password. Select the ‘Convert to EMI’ option under your credit card. 


Most banks offer SMS facilities to help borrowers convert their credit cards bills into EMIs. You will need to send an SMS on the banking number. The bank will contact you and convert your transaction into affordable EMI. 

Read Also: Credit Cards Offers in Electronic Purchases

Customer Care

What are the fees involved for converting credit card outstanding into EMIs?

Interest rate

When you convert your credit card outstanding dues into EMIs, you will incur interest on the principal or outstanding amount. The interest rate depends on your credit card issuer and the loan tenure that you choose. If you choose longer loan tenure, you will have to pay high interest. The loan tenure usually ranges between 6 months to 24 months. 

Further, the interest rate of credit card EMIs is determined based on the risk assessment of the credit cardholder. Issuing banks usually consider the cardholder’s credit card spends and repayment track record before deciding on an interest rate. So, the interest rate on credit card EMI would vary depending on the borrower’s credit profile. 

Processing free

Although banks do not charge any processing fee, some financial institutions may charge an upfront processing fee for converting the credit card bill payment into EMIs. At Kotak Mahindra Bank, the processing fee varies according to the tenure you choose. It may vary from nil to a maximum of Rs 15 per 1000 rupees.

Prepayment Charges

Before converting your credit card outstanding into EMIs, it is imperative to understand the prepayment charges along with the taxes involved. Several banks may charge a prepayment fee if you wish to pay off your dues before the end of the loan tenure. But at Kotak Mahindra, we encourage you to become debt-free. There are no prepayment or foreclosure charges on paying off your loan earlier than the tenure.

Benefits of choosing EMI on your credit card bill payment

There are several benefits of converting your credit card outstanding due into EMIs that you can avail of. 

Low-interest rate

The benefit of selecting the EMI option on your credit card bill payment is that you can avail of a lower interest rate. Kotak Mahindra Bank only charges interest on the outstanding balance rather than the entire amount. For instance, if the outstanding balance on your credit card is Rs. 50,000/- and you have made a payment of Rs. 20,000/-, the interest rate will be charged on the balance amount, which is Rs. 30,000/-. 

Flexible repayment 

The best part about converting your credit card bill payment into EMIs is that you have longer repayment tenure to pay off your due. You can significantly reduce the financial burden. However, it is worth noting that to avoid the habit of paying the minimum due as it attracts at least 5% of the outstanding balance in interest. 

Read Also: क्रेडिट कार्ड के लिए ऑनलाइन आवेदन

No impact on credit history

Converting your credit card bill payment into EMIs does not affect your credit history. Instead, you will have a chance to make on-time repayments and prevent late payment charges. When you make on-time repayment, your credit score will likely increase.

So, understand the benefits of converting credit card bills into EMI’s and make your life convenient.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.