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EMI credit card - How does it work?

Home >> EMI Credit card Page 1 >> EMI credit card - How does it work?

EMI Credit Card works well enough!EMI credit card is a worthy consideration.EMI credit cards are ideally suitable for those who wish to buy things for which they don’t have ready cash -inadequacy of cash money; of course there is a low interest personal loan option that can get you Rs. 20,000 or less without the worry with the EMI credit card. EMI credit cards are offered by merchant establishments, it is the special EMI offer on bank credit cards, which means convenience and hassle-free buying of products and services on EMI Easy Monthly Installments at select outlets.

Look for an outlet affiliated to the EMI program, Visit the outlet and choose products or services, prior to buying talk to the cashier about your intention of buying under the EMI program. A processing fee is levied either one time charge basis or EMIs in advance. Study the possibilities at the merchant outlet. EMI is the part amount the borrower pays back towards the loan. The EMI Equal Monthly Installment or Easy Monthly Installment–the amount is sum total of two components: Principal amount and Interest. Principal repayment: This option lets your pay towards the principal loan amount, therefore reducing the principal outstanding. As the principal outstanding decreases so does the interest, as the interest is levied on the Principal outstanding.
An EMI = Interest payment + Principal repayment.

The tenure matures, the principal repayment component increases and the interest component decreases-the EMI remains fixed amount. The 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.An existing credit card can fetch you 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 pre-closure charges. 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.

A large purchase over Rs.10, 000 attracts the attention of banks, who will offer an EMI facility to make payment. The EMI can be higher than normal, so it is all together better to avoid the EMI and repay the amount at one go. Be wary of the interest-free EMI because they don’t exist in the real sense as the equivalent amount is collected under some other head. Though EMIs could be interest-free than EMIs are beneficial. Yet some card companies offer 6-2 months EMI route may be trickery in disguise. Try to avoid additional expenses on such offers and stick to familiar situations.

EMI Credit Card – Make it work for you, so that you don’t !

 
 
 
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