You might be able to pay your loan EMI using a credit card, but it’s not guaranteed. It depends on whether your lender allows it and the payment method you choose. Even if it’s accepted, most lenders charge a convenience fee, and you may not earn any rewards. On top of that, carrying the EMI balance on your card can quickly lead to high interest costs if it’s not paid off in full. So, while it’s an option, it comes with trade-offs you should be aware of.
The 4 common ways people try—and what actually works
1) Pay on your lender’s portal (if they allow cards)
Some banks/NBFCs accept credit cards on their own payment gateways. Many do not. You must check your lender’s website or support before attempting it.
What to expect: a convenience fee (often ~1–2.5% + GST) and no rewards on many cards for “financial institution” payments.
2) Use BBPS (Bharat Bill Payment System) via a bill-pay app (limited, lender-specific)
Some apps let you pay certain loan EMIs using BBPS and select “credit card” at checkout, but it depends on your lender and the app. These payments often come with extra fees. Most apps still prefer EMI payments through net banking, debit cards, or wallets, so it’s best to check your lender’s options within the app before paying.
3) Confusing look-alikes: card EMI vs. loan EMI
It’s easy to mix up “card EMI” and “loan EMI,” but they are very different. A card EMI happens when you take a regular purchase made on your credit card—say, a RuPay card transaction in Google Pay—and convert it into monthly installments. This only spreads out the payment of that specific card purchase; it does not pay off any separate loan you may have.
On the other hand, a loan EMI is a scheduled monthly repayment toward an existing loan, such as a personal loan, home loan, or car loan. Using a credit card to pay this EMI is a separate process, often subject to fees, and is not automatically linked to your card purchases. Confusing the two can lead to unexpected charges or missed payments, so it’s important to know which type of EMI you’re dealing with.
4) Cash advance or quasi-cash routes (avoid)
Withdrawing cash or using workaround flows to create “cash-like” transfers typically triggers interest from day one, cash-advance fees, and often no rewards. It’s the costliest path and best avoided.
Can I pay an EMI with a UPI Credit Card (RuPay on UPI)?
- UPI credit card on UPI (RuPay) currently supports merchant (P2M) payments only. You can’t pay a person or another credit card from the linked card. Loan EMIs are payable only if the lender’s acceptance stack supports credit on their merchant QR/gateway—which many do not.
- Even where a lender’s QR works, these are usually coded as financial-institution payments, which often don’t earn rewards on many card programs.
Pros and cons of using a credit card to pay EMI
Potential upsides
- Emergency liquidity: avoid a late EMI if cash is tight, then clear your card in full before the due date.
- Cycle timing: if the card posts right after your statement date, you may get a longer interest-free window before your card due date (provided you pay in full).
Real risks
- Fees > rewards: convenience fees can wipe out any points/cashback.
- No rewards: many card programs exclude loan/financial-institution categories.
- Debt stacking: you’re swapping lower-rate loan EMI for potentially higher-rate card debt if you don’t clear the statement in full.
- Issuer or app declines: many lenders simply don’t accept card rails for EMI.
Smarter alternatives if cash is tight
- Change or align the auto-debit date with your salary credit (ask your lender).
- Part-prepay/top-up/refinance to reduce EMI stress. (Banks publish restructuring/repayment options and FAQs.)
- Purchase-EMI on the card for future big buys instead of pushing an existing loan EMI to your card. (This keeps liabilities cleaner.)
FAQs
Does RBI allow paying EMIs through credit cards?
RBI does not ban it outright, but acceptance is a lender/processor decision, and card EMI programs have separate rules under the Master Direction on Credit Cards & Debit Cards. Always check your lender’s accepted modes.
Do popular apps support EMI via credit card?
Support varies. Some guides claim BBPS routes allow it for certain lenders, but many large apps list net-banking/debit/wallet for EMI. Verify in-app for your specific lender to avoid fees/declines.
Will I get rewards for paying an EMI with a card?
Often no. Many issuers exclude “financial institution”/loan categories from rewards and charge convenience fees that cancel any upside.
Bottom line: You can sometimes pay a loan EMI via credit card in India, but it’s not universal, usually costs extra, and rarely makes reward sense. Use it only as a short-term fallback, and clear your card in full by the due date to avoid turning a small fix into bigger debt.
