While you should always strive to pay off your credit card dues in full month-on-month, there are times when your card’s statement size might go over the top – maybe because you spent a lot that past month, or maybe because you made a heavy yet important purchase using your card, for which you might have taken a loan anyway.
In such cases, if you aren’t able to pay off our credit card dues in time, the interest rates can be pretty high. But recently, some banks have come up with EMI schemes that let you convert a portion of, or your entire credit card statement into monthly EMIs at 0% interest rate. The only thing you pay upfront is some processing fee which amounts to around 5% – 7% – could be even lesser.
So, let’s assume you made a purchase worth ₹50,000 this month and you don’t want to pay the full amount next month. You could convert this into a 9-month EMI scheme and pay just ₹5,555.55 every month – that’s what will show up on your card’s statement every month for the next 9 months (in addition to your other spends, of course). And the first month will also contain a processing fee depending on your amount and your bank.