How does credit card EMI work?

Credit card EMI allows you to convert high-value purchases or outstanding bills into fixed monthly instalments. When you opt for this facility, the bank pays the merchant upfront and blocks an equivalent amount from your credit limit. You then repay the amount over a tenure, typically 3 to 24 months, with added interest and applicable processing fees. As you pay each EMI, your credit limit is gradually restored. This feature helps manage cash flow for big-ticket items without requiring immediate full payment.