For quite a while, keeping money and back associations have been putting forth clients the choice of changing over their buys into EMIs. This basically implies the client has the alternative of paying for a buy done by means of a charge card in simple equivalent regularly scheduled payments. The alternative of changing over one’s buys to EMI can be particularly useful when making high esteem buys which are done by means of a Mastercard. You might not have any desire to make a high esteem installment in one go. This is the point at which the EMI choice comes in exceptionally helpful and enables you to pay for the buy in simple EMIs. The reimbursement sum can be paid in portions which are less demanding on your wallet as well as enable you to keep up your financial plan by utilizing EMI Calculator. A few banks have started offering clients the choice of paying for their buys in EMIs, enabling them to influence advantageous buys without worrying about making the whole installment in one to go.
Advantages of Converting Purchases to EMIs
There are several advantages attached to convert your purchases into EMIs. Some of them are as follows.
- Attractive Rates of Interest – Banks and lending institutions which provide the facility of converting purchases to EMIs usually provide very affordable interest rates. As we know, that all EMI payments do carry a certain rate of interest, the same is usually low for purchases which have been converted to EMIs. There are also instances when the bank may not levy any interest whatsoever on your purchase EMI.
- Flexibility in Repayment Tenure – Customers are given the freedom in terms of the tenure within which they must make the repayment on their purchases. The usual tenure allowed for repayment may range from 3 months, 6 months, 9 months and 12 months. Banks like HDFC, SBI, ICICI, Citibank and several others provide customers the option of making repayments on their purchases at a flexible pace which is convenient.
- Minimal to Zero Paperwork Involved – For purchases converted into EMIs, there is only minimal or zero paperwork that is involved, which means that you have greater convenience of paying for your big ticket purchases without having to worry about submitting extensive documentation towards the same.
Process of Converting Purchases to EMIs
Different banks will have different processes of allowing customers to convert their purchases to EMI. Given below are some of the basic steps involved in converting your purchases into EMIs.
- Make a purchase. Banks may specify the value over which any purchase made can be converted to an EMI.
- Once you’ve made the purchase, contact our bank or place a request to have the same converted into EMI.
- The bank will calculate the interest which is payable by you on your EMI (if any).
- Choose the tenure that you’re comfortable with, to pay for your purchase.
- The EMIs payable by you will be charged to your credit card account for greater payment convenience.
- Banks may levy a processing fee at the beginning of the EMI transaction.