Credit cards have taken over the world of cashless payment, and the easy availability of funds has made the life of a commoner easier. Credit cards offer a definitive amount of funds depending on the profile of the credit card user. The money can be used for any emergency, and after a limit, the money can be repaid in EMI’s.
For a year, no interest rate is charged on the used credit amount, and by converting it into credit card EMI, the card-holder gets to repay it quickly. There is an option to select the repayment tenure of choice and pay back the credit used in the form of EMI. Let us move forward with the blog to know the steps involved in checking the minimum down payment.
What is an EMI on a Credit Card?
EMI on a credit card is nothing complex. It is the simple conversion of the used credit amount in EMI for monthly repayments. By converting the amount used from the credit card for any purchase like a gadget, education or any other emergency in EMI, the credit card holder gets enough time to repay it effortlessly.
The credit card EMI option is available only when the purchase exceeds the limit outlined by the credit cards issuer. The EMI on the credit card calculation highly depends on three factors; interest rate charged by the financial institute, tenure of repayment and down payment.
How to Calculate Credit Card EMI with a Calculator?
The best credit cards offer the option of EMI repayment; however, you need to pass the eligibility test. The card issuer will check your credit history, score and other liabilities before qualifying you for the EMI option. Reliable customers with regular payment history can convert the credit into EMI with large purchases. Some amounts can be paid as a down payment as well.
To calculate the credit card EMI, you need to have a credit card and follow the following steps while using the online calculator.
1. Enter the Amount
The first step to follow to find the EMI on the credit card is to visit an online calculator. Enter the value you wish to pay to complete the repayment. The EMI depends on the amount you have to repay, and as such, you must decide on the amount after paying the down payment for a manageable repayment.
2. Fill in the Tenure
The second step is to fill in the tenure you wish to repay the credit. Cardholder must analyse their financial situation and choose the tenure accordingly for a smooth repayment. The tenure decides the burden of the EMI so, if you wish to repay the credit early, then go for a shorter term and if you do not have reserves, then extend the tenure.
3. Check the Result
After entering both these values, the credit card EMI will appear. The company imposes the interest rate and processing charges. To alter the EMI, you can change the amount and tenure but not the interest and fees.
The process involves a simple formula where the amount is multiplied by the tenure, processing charges and interest rate.
Benefits of Calculating Credit Card EMI
There are many benefits of calculating the best credit card EMI including the following:
One gets to pay for the purchase via credit card in the form of an EMI, and the interest rate charged on it is also very low. The interest rate is not charged for the first year of repayment, and thus you get enough time to make your repayment.
The repayment tenure is flexible, and you can repay the loan anywhere between 6 months to 3 years. You can manage your purchase without overstraining your pocket.
Processing Fee and Foreclosure Charges
Many financial institutions charge no processing fee. The foreclosure charges applied when you prepay the loan are nominal and facilitate an easy purchase with a credit card. , you can
Now that benefits are known and the steps involved in checking the minimum down payment using a credit card EMI calculator, you must apply for the best credit card today. When you convert your credit card purchases in EMI, you get to avail of lower interest rates and zero processing fees.
You must remember that not all credit cards offer the facility of EMI repayment, and thus, it is imperative to check this option before getting your card. You can choose to pay a fraction of the amount as a down payment and convert the rest to credit card EMI for manageable repayment of the credit used.
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