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Credit card EMI vs Personal loan

Home >> EMI Credit card Page 1 >> Credit card EMI vs Personal loan

EMI credit card is unbeatable!A commoner’s favourite EMI credit card has many advantages over ordinary credit cards. It cuts out many bothersome issues and leaves you to concentrate on other important issues. It helps you make purchases, obtain personal loans and pay back in easy EMIs - all these with hordes of benefits.

An important issue is about interest rate when considering purchases and loans, as it saves money. EMI Credit Card charges a lower interest rate of about 1.5 per cent to 2 per cent per month compared to a normal interest rate of 3%. One enjoys the interest-free period in spite of the entire dues remaining uncleared. If you must consider a personal loan for larger sums (Rs.20, 000 or more) then a bank option is better as the rate of interest (average 13-17%) works out comparatively lower to an EMI Card.

On the other hand if you are considering a loan for smaller sums (Rs.20, 000 or less) an EMI credit card is a good option, as most banks do not grant smaller loans and the processing is time taking as well. With an EMI option offer there is no processing fee or preclosure charges.EMI credit card is more advantages than an ordinary credit card as the rate of interest charged is a low 2% per month and there is no interest levied on the entire outstanding balance. Paying a minimum balance and rolling over the remaining balance, incurs an interest charge of 2.95% on lower side.

• The EMI card- the customer pays a fixed amount per month.
• There is no grace period and interest get deducted e.g. Cash withdrawal tax.
• The tenure (not the due amount to be paid) gets increased in case of multiple purchases.
• All credit card transactions get converted to EMIs automatically.
• The EMI amounts ranges from Rs.1, 500, Rs.2, 000, and Rs.3, 500 per month. As pre-decided by the banks.

The EMI amount remains steady even if multiple purchasing occurs, but the tenure will extend proportionately.There is no difference on interest rates between EMI card and EMI on call. But it differs in repayment modes, with the EMI card the amount remains unchanged, the tenure get extended, with the EMI on call the amount changes but the tenure remains unchanged. Any purchase converts into EMI as one gets the rate of interest benefit. On an ordinary credit card the rate of interest works out to a 35% yearly, on EMI on call it works out to a 12-15%.

There is an obvious difference in rate of interests, tenure and documentation, paperwork. between EMI cards, EMI on Call and Banks. To sum it up the EMI Credit Card has an edge over the other options, more benefits, less worry. Only disadvantage is when you go for large sum loan, which proves costly, but there is always the bank for that.

EMI Credit Card is a versatile card, with a singular motto of saving your money!

 
 
 
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