How credit card EMIs are charged
- Interest is charged on the reducing balance, like a loan. Card EMI rates are commonly 13–24% a year.
- GST of 18% is charged on the interest and on the processing fee, which raises the real cost.
- “No-cost EMI” usually means the merchant gives a discount equal to the interest — but GST on that interest and any processing fee are still payable.
Why paying only the minimum due is expensive
Card interest is typically 3–3.75% per month — over 40% a year. Interest is charged on the full balance from the purchase date if you don't pay in full, and paying only the small minimum due means the balance falls very slowly. Use the second calculator to see the real cost.
Better options
- Pay the full bill by the due date — then you pay no interest at all.
- If you can't, convert the balance to an EMI at a lower rate, or consider a cheaper personal loan to clear it.
- Keep usage below 30% of your limit to protect your credit score.