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Credit Card EMIs, No-Cost EMI and Balance Transfers in India

By PointsExplainedLast reviewed

Ask for the breakdown

Before converting, note the principal, the interest and any upfront discount. RBI requires issuers to show these before the conversion and again on your statement.

Add up the full cost

Include interest over the whole term, any processing fee and taxes, and rewards you lose on the converted purchase.

Check the exit terms

Find out whether you can cancel free of charge within a set period and what foreclosure fee applies after that.

Keep paying the minimum on time

If your issuer includes EMI instalments in the minimum amount due, a missed instalment is a missed minimum payment.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Reserve Bank of India (Commercial Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025 (RBI/DOR/2025-26/155, 28 November 2025)

    Para 12(3): transparency in EMI conversion (principal, interest, upfront discount by merchant/issuer to make it no cost, shown before conversion and separately in the statement; interest-bearing EMI must not be camouflaged as zero-interest/no-cost); para 12(4): loans offered through credit cards must comply with RBI instructions on loans and advances; para 23(1): APR quoted for balance transfers and other situations where different.

    rbi.org.in · Accessed
  2. SBI Card FAQs: Flexipay (convert to EMI)

    SBI Card Flexipay: converts eligible retail purchases within a recent window above a minimum amount; interest, fees and charges cannot be converted; one-time processing fee may apply; instalments billed on monthly statement from the first statement after booking; first EMI may differ because of interest period to first due date; free cancellation within 30 days, foreclosure fee after.

    sbicard.com · Accessed
  3. SBI Card FAQs: Earning reward points

    SBI Card: reward points on transactions converted to Flexipay EMI are forfeited; balance transfers do not earn reward points.

    sbicard.com · Accessed
  4. SBI Card: Most Important Terms and Conditions

    SBI Card MITC: minimum amount due includes 100% of the EMI amount.

    sbicard.com · Accessed
  5. SBI Card FAQs: Balance Transfer

    SBI Card balance transfer: from other banks' cards in India at lower rates of interest; fixed tenure plans; paid to the other card via NEFT; primary card only; only cards in the cardholder's own name; not for another SBI card; capped relative to available credit limit.

    sbicard.com · Accessed
  6. SBI Card FAQs: Encash

    SBI Card Encash: pre-approved facility for select cardholders, funds to bank account, processing fee plus taxes, fixed tenures, instalments billed on the card statement, foreclosure fee.

    sbicard.com · Accessed
Questions

About this guide

Is a no-cost EMI really interest-free?

RBI's rules refer to an upfront discount from the merchant or issuer being used to make an EMI no cost, and require the principal, interest and discount to be shown before conversion. An EMI with an interest component must not be presented as zero-interest or no-cost.

Can I convert card fees or interest into an EMI?

Not at every issuer. SBI Card, for example, says interest, fees and other charges on the card cannot be converted into Flexipay EMIs.

Can I transfer a balance between two cards from the same bank?

Rules vary. SBI Card, for example, does not let you book a balance transfer for another SBI credit card you hold; it covers cards issued by other banks in India.
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