August 31, 2025 · 12 mins read
Credit cards are not just a payment instrument anymore; they are a lifestyle device for millions today. Credit card transactions alone had registered more than ₹1.5 lakh crore in the year 2024, showing that they are becoming more and more synonymous with day-to-day spending. The EMI facility is probably one of the well-liked ones among the many other features offered.
The EMI facility allows the cardholders to transform costly purchases into low-value monthly instalments. As per recent surveys, almost 65% of customers across urban regions prefer to use EMI to purchase gadgets, appliances, or holiday packages. This facility, too, allows for expensive purchases to be made affordable, thus aiding cash flow on the buyer's side.
On the contrary, though, the sad reality for most cardholders is that this EMI facility cannot be had all the time at checkout. It keeps the buyers confused, especially when they expect some sort of flexibility for high-ticket purchases. Sometimes it is technical, but more often it is because of bank policies or card eligibility criteria.
With credit card EMI options, customers can purchase expensive goods in fixed, reasonable monthly installments. In other words, the facility makes shopping affordable by putting the cost into smaller stairway-like payments, as opposed to one full payment. Banks generally offer this on selected transactions and approved purchases. It usually involves interest or processing charges, depending on the bank and merchant.
Credit card EMI is gaining popularity in India. Most people would rather pay in installments than in full for everything from phones to vacations. This offers financial ease and better budget planning for young households and professionals.
When you purchase a product, the bank can convert it into EMIs. The price is divided into equal monthly installments for a chosen tenure. Interest rates can be different depending on the bank, merchant, and tenure. Some banks offer zero-cost EMI through merchant tie-ups, though hidden costs may exist. However, repayment is quite straightforward; the EMI gets loaded into your existing monthly credit card bill as a separate line item until the whole amount of the item is paid off.
It often confuses cardholders when the EMI option fails to appear at checkout. Again, reasons can depend on the card policies, types of transactions, and/or repayment history. Knowing these reasons helps you sort out the issue faster.
A low limit is one of the most common reasons for EMI ineligibility. If your purchase exceeds the available limit, EMI cannot be processed. For instance, a ₹50,000 phone cannot be converted into EMI if your limit is ₹40,000. Increasing your limit should usually fix it, or keep the usage limit on your card down.
Not every transaction is an acceptable EMI. Generally excluded are wallet top-ups, bill payments, or fuel expenses. As another case, paying ₹5,000 for electricity bills won't be eligible. Banks generally allow EMI only on retail purchases. Always check your bank’s EMI-eligible transaction list before shopping.
Sometimes the merchant is the reason, not the bank. There are certain stores or e-commerce sites where the EMI option is not available on a credit card. For instance, a neighborhood shop may ask for full payment. Similarly, some online platforms restrict EMI to partner banks. Choosing another merchant or card often solves the problem.
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Each bank sets its own policies. Some restrict EMI to premium cards, while basic cards may not offer it. For example, a platinum card may support EMI, while a silver card does not. Always check card features before going for EMI on any big shopping.
At times, EMI options disappear due to system errors. Bank servers or payment gateways may show the EMI option as not available on credit cards during heavy traffic, such as festive sales. It usually works, but you have to try it again after some time. These are temporary problems, and it has nothing to do with you being eligible for credit card EMI options.
Banks always look into your repayment history. You can be blocked if you have missed payments or have pending dues. If there is a record of late payments, then it signals poor credit discipline, making you unqualified. Timely payments and rebuilding your credit score get EMI approvals back.
The majority of cardholders are confused by how credit card EMI options work, and consequently, they make incorrect assumptions. These myths are often misleading and guide incorrect financial decisions. Let's dispel some of the most common myths surrounding credit card EMI.
The majority of people believe that EMI represents no additional costs.. Actually, most EMI schemes come with interest or processing charges. Even "no-cost EMI" has fees in product prices. Always inquire about the amount to be repaid before opting for this.
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Not all credit cards provide an EMI facility. The standard cards might not provide it at all. For instance, premium cards would provide flexible EMI, but not the basic cards. The category of the card and the bank policy determine the eligibility.
Others believe that EMI reduces cost. In fact, EMI only allows payments to be made in installments instead of reducing the cost. It can actually lead to overspending since small payments do not burden you. Careful use is needed to avoid getting trapped with debts.
If your credit card EMI options are not functioning, don't worry. Banks generally offer cardholders the facility to activate or apply for EMI through simple steps. By following proper steps, you can get EMI reactivated and enjoy flexible payments.
The initial step is to dial your bank's customer care. The authorities will tell you if EMI isn't available and why. They can enable EMI manually in the majority of cases for eligible transactions. Have your card and shopping information at hand.
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Banks generally consider your spending before they grant EMI. Regular usage of your card builds confidence. For example, regular monthly usage with on-time payment improves your creditworthiness. Within a certain duration, the bank will grant EMI facilities automatically.
A good credit score enhances the possibility of EMI approval. On-time payment of bills and utilization of credit below 30% is effective. Avoid defaults and maintain a good credit history, which reflects trustworthiness to lenders. This makes it easy to spark EMI.
Sometimes EMI is rejected due to low credit limits. Applying for a limit hike can solve the issue. Banks will agree if you have a good payment and income track. When you increase the limit, there are more chances that you may become eligible for EMI.
EMI is not just about cost. It also provides a number of benefits that make the payment of expenses easier and more intelligent for cardholders. The main advantages of paying with EMI on your credit card are given below.
Credit card EMI options allow you to buy expensive things without spending the money at once. This makes smartphones, laptops, and appliances easy to get. You don't have to wait months to save up; you can start using your purchase right away.
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Banks let you choose a repayment period that works for you. Shorter periods are paid more every month, but due to this, the interest is less in the end payment. On the other hand, longer periods may spread the load of high EMI payment for a short term, but charge you more in the long term.
Pay in installments so that you do not overload yourself with a lot of financial burden at once. It maintains your monthly budget and keeps those big expenses in line. For example, buying a washing machine on EMI keeps cash for rainy days intact. This control allows long-term financial planning.
Most stores have festive season deals such as zero-interest EMI. Festive season deals and bank associations reward you while shopping. These deals exempt you from extra charges and provide you with extra value for your shopping. Always look out for festive season EMI deals.
Despite their convenience, credit card EMI options have their downside. Being aware of these drawbacks helps you to make a well-planned financial decision before committing to any huge purchase. Let us look at the possible downsides of using EMI.
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All EMI schemes have interest, and that forms a part of your complete repayment. For instance, a ₹50,000 computer could be ₹56,000 with interest included. Contrast the final amount to be paid before taking EMI.
All banks impose processing or conversion charges on EMI transactions. Small amounts of such fees accumulate in case of frequent transactions. Even "zero-cost EMI" conceals charges in product prices. Careful reading of the fine print prevents surprise costs.
When you pay for a purchase through EMI, your credit limit goes down. This restricts you from making new purchases. If today's EMI is ₹30,000, the amount today will not be withdrawn until the EMI payment has cleared.
As EMI divides the payments into small portions, shopping becomes less stressful. This can result in impulse purchases and unnecessary shopping. After some time, a number of EMIs will strain your wallet.
If you've ever experienced issues like an EMI option not being available on a credit card in the past, then awareness will keep you out of trouble in the future. You can make EMI available whenever you want if you plan in advance.
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Always pay your credit card bills on time. If you pay the payment on time, it gives confidence and lets banks know that you are a good borrower. This way, you can improve your creditworthiness and increase the chances of credit card EMI options approval in future transactions.
Don't use your entire credit limit for regular transactions. Keep at least 30% of the limit vacant. When you purchase an expensive item, this provides adequate buffer space for EMI conversion.
All the banks have tie-ups with specific merchants for EMI offers. Shopping at these merchants will likely make EMI approval easier. For example, big e-commerce portals will offer better credit card EMI options than local stores.
Banks often modify EMI eligibility and transactions. So, before engaging in high-value transactions, always check the website or mobile banking app of your credit card bank. Anticipating changes in advance spares you from shocks and facilitates easy use of EMI.
Credit card EMIs have transformed shopping and paying for expenses. They simplify high-end purchases by splitting the same into convenient small instalments. Recent studies showed that nearly 70% of Indian millennials choose EMI options when they buy electronics or holiday packages. Another survey showed that over 40% of online payments over ₹10,000 are made through credit card EMI options.
Despite this popularity, it will show the EMI option as not available on a credit card at the time of checkout. The reasons are low credit limits, merchant restrictions, or past defaults. Technical issues and strict issuer policies also prevent smooth EMI conversions.
The silver lining is that most such issues can be addressed. Accessing EMI options is easier when you make payments on time, which can improve your credit score, and when you shop with partner merchants. Using EMIs can be a good way to afford expensive items without messing up your budget, but you have to be smart about it.
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The most common reasons the EMI facilities are not available to you are due to a lack of credit limit, restricted transactions, a merchant block, past defaults, or strict issuer rules.
Yes. You can reach out to banks for assistance through customer service, mobile banking, or by visiting a branch. Banks verify eligibility prior to activating EMI facilities for cardholders.
No, things like fuel purchases, wallet recharges, and bill payments generally aren’t included. EMI is usually applicable to qualifying retail or online purchases.
Sometimes, the prices of products contain some additional charges or processing fees. Hence, always ensure to check the repayment schedule and terms prior to availing zero-cost EMI.
Yes. The purchase amount converted to EMI is subtracted from your credit limit, and you have a lower credit limit remaining until repayment is made.
Yes. Defaults or delays in payment reduce creditworthiness. Banks can restrict EMI facilities for customers with a poor repayment history or defaults.
Pay bills on time, maintain a good credit score, have available limits, and shop at bank-approved or affiliate merchants.
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