Introduction
In today’s digital age, credit cards provide not just convenience but also flexibility in managing expenses. One of the most powerful features is the ability to convert large purchases into Equated Monthly Installments (EMIs). This allows consumers to “buy now, pay later” — breaking down big payments into smaller, manageable chunks. In this guide, we will walk through how EMI works on credit cards, the specific benefits using Roarbank’s EMI facility, and practical considerations.
What Is Credit Card EMI
How Credit Card EMI Works
Credit card EMI is a facility offered by many banks and financial institutions where a transaction (or a portion of it) can be converted into monthly installments. Instead of paying off the full amount on your next statement, you spread the cost over several months, paying part of the principal plus interest.
Depending on the credit card issuer, you might be able to convert a purchase right after making it (instant EMI), or post-purchase, by selecting a transaction from your statement and turning it into an EMI plan.
Typical EMI Tenures & Interest Rates
The tenure for credit card EMIs usually ranges from 3 to 24 months, though this depends on the issuer. The interest rate is predetermined by the bank according to the tenor and their internal policies.
In the case of Roarbank, for example, you can choose a term between 2 to 12 months for EMI conversion.
Step-by-Step Guide: How to Use Roarbank’s EMI Credit Card Facility
Here, we detail the step-by-step process for using the EMI feature with Roarbank:
Step 1: Make a Qualifying Purchase
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Use your Roarbank 2-in-1 card (which combines a RuPay credit card, savings, and UPI).
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The minimum transaction amount eligible for EMI conversion is ₹2,000.
Step 2: Open Your Roarbank App
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Go into the Roarbank mobile app.
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Navigate to your transaction statement or look for the “EMI” section within the app.
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Select the transaction you want to convert into EMI.
Step 3: Select Your EMI Plan
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Choose a repayment tenure between 2 and 12 months, depending on what works for your budget.
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Confirm the plan you want.
Step 4: Confirm & Activate EMI
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Once you confirm, the amount is converted into an EMI with a fixed interest rate.
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For Roarbank, the monthly interest rate is 1.0% on the total transaction amount.
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There are no hidden or surprise fees: the rate is fixed, and the EMI plan is transparent.
Step 5: Repay the EMI
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Your card statement will include the EMI payment.
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You can repay the EMI early if you want: Roarbank allows full prepayment from the app.
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However, if you do prepay, note that there is a 2% foreclosure fee on the remaining principal.
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Partial early repayment (paying just some future EMIs) is not allowed — it must be all or the scheduled plan.
Key Benefits of EMI Credit Card (Specifically with Roarbank)
1. Financial Flexibility
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By converting a large expense into EMIs, you reduce the burden of a lump-sum payment.
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With Roarbank, you can pick from 2 to 12 months, giving you control over how long you spread your payments.
2. Low & Transparent Interest
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Roarbank’s EMI interest rate is just 1% per month, which is relatively low compared to some credit card financing options.
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Since it’s flat interest (not reducing-balance), your EMI amount is predictable and doesn’t change month-to-month.
3. Post-Purchase Conversion (“Regret-Proof” Spending)
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Roarbank enables post-purchase EMI conversion. That means even after you pay with your card, you can go back in the app and convert the transaction to EMI — a great feature for flexibility. This feature helps if you only later realize a big purchase will strain your finances and need to spread it out.
4. Self-Service and Control via App
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You don’t need to call a bank officer or visit a branch — everything is done in the app. Roarbank official website
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You can manage EMIs, choose tenures, and check outstanding amounts easily.
5. Transparent Foreclosure Option
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If you come into extra cash, you can prepay the full EMI amount, though you’ll pay a 2% foreclosure fee.
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This means you have flexibility but also clarity: you know what it costs to exit early.
6. Helps with Credit Management
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Using EMI responsibly (paying on time) helps maintain good credit discipline.
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With Roarbank, being cautious with your credit limit and repayment shows healthy credit behavior
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Since EMI conversions block part of your credit limit (the principal is considered used), it encourages you not to overspend recklessly.
Risks and Things to Watch Out For
While EMI helps with flexibility, it’s not always free money. Here are some considerations:
Interest Accrual
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Even though 1.0% per month seems modest, over time, interest adds to the total cost.
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Make sure to calculate the total payment (principal + interest) to evaluate if EMI is costlier than paying in full (if possible).
Foreclosure Fee
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If you prepay the EMI, Roarbank charges 2% on the remaining principal.
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That means early repayment isn’t “free,” so weigh whether it’s better to continue EMIs or pay off fully.
Impact on Credit Limit
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When you convert a transaction to EMI, the entire principal amount is blocked against your credit limit.
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This can reduce your available credit, which could limit future spending unless you clear EMIs.
Committing to Tenure
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With Roarbank, partial prepayment isn’t allowed — you must either stick to the schedule or do a full foreclosure.
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Choose your EMI tenure carefully based on your cash flows, so you’re not stuck in a plan that doesn’t suit your financial situation.
Comparison With Other EMI & Credit Card Options
To better understand Roarbank’s EMI advantages, it helps to compare with general EMI facilities:
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Some banks offer instant EMI or post-purchase EMI; Roarbank supports post-purchase conversion.
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In other banks, interest rates may be much higher, or there could be processing fees.
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Some “EMI cards” (special credit-loan hybrid cards) let you repay early without foreclosure fees; however, credit-card-based EMI (like Roarbank) often have such fees.
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The benefit of Roarbank’s EMI is its simplicity, low fixed interest, and app-based management.
Best Practices for Using EMI Wisely
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Only convert when necessary: Use EMI for large purchases or when you don’t have the lump-sum ready, not for everyday spending.
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Choose tenure carefully: Shorter EMI terms mean less interest overall, but higher monthly payments.
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Monitor your credit limit: Since converting to EMI blocks your card limit, keep an eye on how much of your limit is tied up.
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Plan for early repayment: If you expect to have extra cash, calculate the foreclosure cost and decide if repaying early makes sense.
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Track in the app: Use the Roarbank app to check your EMI schedule, remaining principal, and due dates.
Conclusion
Credit card EMI is a powerful tool for managing your finances, giving you flexibility and spreading big charges over time. With Roarbank, you get a clean, app-driven EMI experience: low fixed interest (1% monthly), easy conversion, and flexible tenure (2–12 months). You also retain control over repayment, with the option to prepay (albeit with a fee) if your situation improves. As long as you use EMI strategically, it can be a smart way to balance your spending needs with your financial health.
