Shopping For Home Appliances: Choosing Credit Cards With EMI Options

08^th Apr 2025...

Home appliances aren’t just a luxury anymore - they’re a big part of everyday life. A fridge keeps your food fresh, and a washing machine saves you time and effort. They make things easier and more comfortable.

But buying new appliances or upgrading can be expensive, so planning your money is important. The good news is, there are now easy payment options that make it simple to buy what you need without breaking the bank.

The working of credit card EMI for buying home appliances

Buying home appliances often comes with a significant upfront cost, making affordability a key consideration. Thankfully, credit cards have evolved beyond simple payment tools. They now offering features that make managing large expenses much more convenient.

Among these, EMI options stand out as a smart solution, breaking down the total cost into smaller, more manageable instalments. With this approach, shopping for appliances becomes not only simpler but also less of a strain on your monthly budget.

Key considerations for credit card EMI

When you convert a purchase into EMI, you may have to pay an additional interest amount. This interest is a percentage of your total purchase price and is charged monthly.

Interest

Some credit cards offer zero-interest or no-cost EMI, but these may come with conditions like a higher upfront price or limited tenures. Always calculate the total interest over the tenure to understand the actual cost of the EMI before opting for it.

Repayment tenure

Repayment tenure is the period during which you pay back the amount in instalments. Shorter tenures mean higher monthly payments but lower overall interest, making it more economical in the long run.

On the other hand, longer tenures reduce monthly payments but increase the total cost due to the cumulative interest. Choose a tenure that fits your monthly budget while keeping the interest manageable.

Processing fees

Most banks charge a processing fee to convert your purchase into EMI. This is usually a small percentage of the total amount. The fee is often non-refundable, so it adds to the overall cost of the transaction.

During promotions or special offers, some banks may waive this fee, so it’s worth checking beforehand. Always include the processing fee in your total cost calculation to avoid underestimating expenses.

Other charges

Apart from interest and processing fees, there might be extra costs like prepayment penalties if you decide to clear your EMI before the tenure ends. Missing an instalment further leads to late payment fees, affecting your credit score negatively.

The hidden charges can make the EMI option more expensive than expected. So, always review the terms and conditions to understand all possible fees involved.

Credit limit and utilisation ratio

When you buy something on EMI using your credit card, the amount is taken out of your card’s limit. This means you’ll have less balance left to spend. If you use too much of your card’s limit (called the credit utilisation ratio), it could lower your credit score.

A good rule is to keep your utilisation below 40% to maintain a healthy financial profile. Plan your purchases to ensure your credit limit can handle the EMI amount without leaving you short on available credit.

Warranty and guarantee of the purchased product

When purchasing on EMI, confirm that the product’s warranty or guarantee remains valid. Some manufacturers or retailers might offer extended warranty or additional protection plans as a bonus for EMI purchases.

Keep your invoice safe, as these may be required to claim warranty services. If there are any conditions tied to the warranty for EMI purchases, clarify them beforehand.

Take advantage of your Kotak811 Credit Card

With Kotak811 Credit Card EMIs, buying big items like appliances is easy and stress-free. You can pay in small, manageable amounts instead of all at once. It’s a simple way to get what you need without worrying about your budget. Plus, you get great benefits and flexible payment plans. Shop smart, stay in control of your money, and enjoy the convenience of paying over time!

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.