How to Convert Your Credit Card Bill into Easy EMIs

March 29, 2025 By: Nisha Chawla

Managing credit card bills can be challenging, especially when the amount is large. If you are struggling to pay off your credit card dues, there is a solution. Most banks offer the option to convert your credit card outstanding balance into easy Equated Monthly Instalments (EMIs). This helps you pay back the amount in small, manageable chunks instead of one big payment.

In this guide, we will explain how you can convert your credit card bill into EMIs, the process involved, benefits, and important things to keep in mind.

What Does Converting a Credit Card Bill to EMI Mean?

When you use a credit card, you are required to pay the full bill amount by the due date. If you fail to pay the total, interest is charged on the unpaid balance. To avoid high-interest rates, banks allow you to convert the outstanding amount into EMIs. This spreads the payment over several months, making it easier to repay.

For example, if your credit card bill is ₹50,000 and you cannot pay it at once, you can opt for an EMI plan. Depending on the bank, you can choose a tenure of 3, 6, 9, 12, or even 24 months to repay the amount in small parts.

How to Convert Credit Card Bill into EMIs

The process to convert your credit card bill into EMIs is simple and can usually be done online or by contacting your bank. Here is a step-by-step guide to help you:

1. Check EMI Eligibility

Before you apply for EMI conversion, check whether your bank offers this facility. Most major banks like HDFC Bank, ICICI Bank, SBI, and Axis Bank provide this option. You can check your eligibility through:

• Bank’s mobile app
• Net banking portal
• Customer care helpline

2. Choose the Outstanding Amount for EMI

You can either convert the entire credit card bill or a portion of it into EMIs. Check with your bank for the minimum and maximum amount allowed for EMI conversion.

3. Select the EMI Tenure

Banks offer different tenure options, usually ranging from 3 months to 24 months. Longer tenures mean smaller monthly payments but higher total interest. Choose a tenure that fits your repayment capacity.

4. Apply for EMI Conversion

You can request EMI conversion through various methods:

• Online Method: Log in to your bank’s net banking portal or mobile app, find the ‘Convert to EMI’ option under your credit card section, and follow the instructions.
• Phone Method: Call your bank’s customer care, request EMI conversion, and follow their instructions.
• In-person Method: Visit your bank branch and request the EMI conversion.

5. Confirm EMI Details

After applying, the bank will share the EMI plan, including:

• Monthly EMI amount
• Interest rate
• Processing fee (if applicable)
• Total repayment amount
• EMI tenure

Review these details carefully before confirming the conversion.

Features of Credit Card EMI Conversion

1. Flexible Tenure: Choose a repayment period that suits your financial condition, typically from 3 to 24 months.
2. Fixed Interest Rate: EMI conversions come with a pre-determined interest rate, which is lower than regular credit card interest.
3. No Need for New Loan: You do not need to apply for a new loan. The conversion is done within your existing credit card.
4. Easy Processing: The process is quick and often instant through online platforms.

Benefits of Converting Credit Card Bills into EMIs

1. Affordable Payments: Instead of paying a large bill at once, you can make smaller, manageable payments over time.
2. Lower Interest Rates: EMI interest rates (12%-24% annually) are lower compared to the 36%-48% annual interest charged on unpaid credit card bills.
3. Preserves Credit Score: Paying through EMIs helps you avoid defaulting, thus protecting your credit score.
4. Financial Relief: Spreading payments over time reduces immediate financial pressure.

Important Points to Consider Before EMI Conversion

1. Interest Costs: While EMIs lower monthly payments, they add interest costs. Check the total repayment amount.
2. Processing Fees: Some banks charge a one-time processing fee (1%-3% of the converted amount).
3. Impact on Credit Limit: The outstanding EMI amount blocks your available credit limit until fully paid.
4. Prepayment Charges: If you want to close your EMI early, some banks may charge a prepayment fee.
5. No Reward Points: EMI transactions typically do not earn credit card reward points.

Example of EMI Calculation

Let’s understand how EMI conversion works with an example:

Suppose you have an outstanding credit card bill of ₹60,000 and your bank offers EMI conversion at a 15% annual interest rate.

• EMI tenure: 12 months
• Interest rate: 15% per annum

Monthly EMI = ₹60,000 × 15% ÷ 12 = ₹5,383 (approx.)

Total repayment = ₹5,383 × 12 = ₹64,596

So, you will pay ₹4,596 extra as interest.

How to Choose the Right EMI Plan

1. Compare Interest Rates: Different banks offer different EMI rates. Compare before choosing.
2. Select Comfortable Tenure: Choose a tenure that fits your monthly budget.
3. Check Hidden Charges: Look for additional costs like processing fees and prepayment charges.
4. Monitor Credit Limit: Keep track of your available credit limit after EMI conversion.

By carefully choosing the right EMI plan, you can manage your credit card dues without financial stress.