EMIs come in handy when you want to buy something that your bank balance doesn’t support such as a high-end laptop, smartphone or that designer blazer that you have had your eye on. There is no need to believe too much, thanks to the EMIs (Equated Monthly Instalments) on bank cards. Get affordable interest rates and easy personal loan processing option and EMIs guide with andromeda.
You have overspent on your credit card throughout your festive season splurge and you are with debt, with rates of interest of up to 36 – 40% per annum. Taking the EMI option on your card balance will bring your interest down to 17-18% per annum, i.e. a reduction by half. This is in addition to the benefit for not having to submit a separate application or create a group of documents.
Credit card companies earn their profit and generate income by earning interest on late payment that generally people make. If you’re among those customers who are paying off their credit card bills within the payment dates, then essentially you are not into their good books and not the dear customers as you are not providing them with opportunity to earn more money on your financial transactions.
To make profit and earn much more these credit card companies lure customers by telling them options to repay-in-future or pay-interest option, the EMI on mastercard option works great to their benefit. It is beneficial for various buyers as he/she might be having some financial crunch or financial limitations due to that he/she is not competent to make the full payment. So, this EMI option gives them a temporary relief and extended borrowing limit to shop and get things on credit and pay later. Direct lenders connect borrowers with loan agent. There are several financial products explained by banks and other lending institutions.
Almost all credit card companies offer two types of EMIs-one is a free of charge zero interest EMI and the other is low rate of interest EMI. One type is free zero interest rate EMI and the other type is a minimal interest rate EMI. The late payment rates of interest that you would have paid normally in case of non EMI option. This low EMI means that the bank understand your inability to pay the full amount in one segment, therefore, it allows you to convert into future dated payments with a small lower interest rate. If the credit card companies do not allow for this, then you might actually default and not even pay the interest part, leave alone the main amount.
The zero-rate EMI is also a good option to make payments against your credit card debt. This option does not require any extra charges from you, so there is nothing to earn out of you. This is a total win-win situation, as you can pay in easy monthly installments without paying anything extra.
Interest rate EMI: The reduced rate interest EMIs offer you a lower monthly payment of between 1.25% to 1.99% per month which is much lower interest charged by the these credit card banks if you default or make late payments.
Processing fee: These banks charge processing charge on converting your outstanding into easy EMIs. The processing fee is onetime charge charged by these banks against your excellent. These banks either charge a sum amount or a set percentage of the processing fee on the total amount depending after the bank’s discretion.
Reduced credit limit: Once you opt for the EMI option, the credit card limit is automatically reduced by the quantity of principal outstanding. Because you keep paying the EMI, the debt reduces.