New Delhi, Feb. 6 -- Although the facility of using a credit card to make purchases can be very convenient, the cost of an expenditure of a large amount may often be unbearable to bear. The EMI option lets you split big payments into smaller payable sums that are payable over a fixed period of time. This article details the major factors that determine your credit card EMI, interest calculation, and how credit card EMIs work.

An Equated Monthly Instalment (EMI) is defined as the amount paid by a borrower to a lender every month in a fixed sum over a specific period to repay a loan. EMIs make budgeting easier and more predictable because a loan gets repaid in equal fortnightly instalments, which cover both the principal as well as interes...