Is the Interest Rate on Credit Card EMI Too High? Check These Facts

interest rate on credit card emi, interest on credit card emi

Monthly payments on your card may look easy, but many miss the true cost of EMIs. Reading the fine print could save you from future bill shocks.

Credit card EMIs are now a popular way to handle large purchases in India. With one tap, a big expense turns into manageable monthly payments. But many users are unaware of the real costs. 

The interest on credit card EMI is not always clearly visible at the time of the transaction. It often shows up later, in the monthly bill. This makes it important to understand if the interest rate on credit card EMI is reasonable or not before saying yes to the EMI option.

Card Spending Is Rising, So Are EMIs – But At What Cost?

Loansjagat article quoting Reserve Bank of India data on credit‐card transactions August 2025 confirm that card spends touched ₹1.91 trillion, nearly 14 % higher than ₹1.68 trillion in August 2024, so more users now see EMIs as a simple fix for large payments. 

The interest rate on credit card EMI shapes the final amount, yet many shoppers do not check it in the rush of a purchase. Some plans carry a fee that sits quietly until the next bill.

Before the table here, one thing stands out. Most people guess costs instead of reading them. That’s how confusion builds.
 

So the numbers rose, and EMI used rose with them. The interest on credit card EMI grows fast when people choose long tenures without planning.

What Does Credit Card EMI Really Mean?

An EMI on a credit card breaks a purchase into fixed monthly parts. It is a simple loan placed on the card. That is the core idea behind Understanding Credit Card EMI Options and How Credit Card EMI Payments Work. The bank gives a tenure, charges a fee, and sets a rate. People often discover the full cost only after the first statement comes in.

Here’s how it works:
 

Many users only focus on the EMI amount. But skipping the rate and fees makes the loan expensive. So, knowing the interest on credit card EMI and comparing plans helps avoid surprises.

How RBI And Banks Handled EMI Transparency Before?

To solve rising confusion, the RBI issued a 2022 circular. It told banks to clearly show EMI interest, tenure, and charges in the Most Important Terms & Conditions (MITC) sheet. Now, most banks must send SMS or email alerts when EMIs are active. This includes details like the interest on credit card EMI, one-time fee, and repayment schedule.

Even then, the final responsibility lies with the customer. If someone skips reading the details, banks are not at fault. So it is always better to check if is interest rate on credit card EMI is too high before accepting the plan.

Conclusion 

Credit card EMIs offer short-term comfort, but they bring long-term cost. The interest on credit card EMI can turn a ₹10,000 purchase into ₹12,000 or more if not planned.

People who ask if the interest rate on credit card EMI fair and compare options usually manage better. A short pause before pressing “Convert to EMI” saves money, mental peace, and surprises later.

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.