EMI on credit cards works like that on a home loan or a personal loan. One has to pay the principal and interest each month and clear off his/her debt over a period of time. However, there are two variants of EMIs:
- Zero Cost EMI– Zero cost or no cost EMI allows one to avail EMIs on credit cards and pay no interest for a specific purchase. The interest amount, in such cases, is paid by the seller or the entity that provides this facility.
- Low Interest Rate EMI– Low interest rate EMIs allow one to pay lower interest amount on transactions than regular interest rates.