2 min
26th Feb 2025
When it comes to financial tools, people often find themselves torn between the Insta EMI card vs credit card. Both serve distinct purposes, but which one suits your needs better? Let’s dive into the details and explore the pros and cons of each.
Insta EMI Card vs. credit cards - Understand the key difference
The table below illustrates the vital differences between these two financial tools to help you make informed decisions about which payment method best suits a situation.
| Point of comparison | Insta EMI card | Credit card |
| Functionality | Primarily used for purchasing high-value items and converting the cost into easy monthly instalments. | Offers a revolving credit line that allows you to make purchases and pay later, either in full or in instalments. |
| Interest | Generally interest-free, but processing fees may apply. | Involves interest charges if you carry a balance beyond the grace period. |
| Eligibility | Often available to specific customer segments (e.g., existing customers of a particular store or brand). | Requires a credit check and approval based on creditworthiness. |
| Credit limit | Typically tied to the purchase amount. | Offers a predefined credit limit based on your credit history. |
| Usage flexibility | Limited to specific partner stores. | Widely accepted for various transactions, including online shopping, travel, and dining. |
| Repayment terms | Fixed EMIs over a specific period. | Flexible repayment options, including minimum payment, full payment, or partial payment. |
| Credit score impact | Regular and punctual repayment can positively influence your credit score. | Affects your credit score based on usage and payment behaviour. |
| Additional features | Focused on EMI conversion only. | Offers rewards, cashback, travel benefits, and more. |
| Ownership | Tied to a specific purchase. | Remains with you even after multiple transactions. |
| Documentation | Minimal documentation required. | Involves detailed paperwork during application. |
