In a world where convenience and flexibility are key, how we choose
to pay for our purchases matter more than ever. Whether it is a new
phone, home appliance, or an unexpected expense, having the right
financial solution can make all the difference. Two popular choices
that often come up are EMI card and credit card. Both let you spread
your payments over time, but they are designed for their own set of
features, benefits, and ideal use cases.
So how do you know which
one is right for you? In this blog, we will walk you through the
difference between EMI card and credit card - helping you make an
informed decision based on your spending style and financial goals.
Read on!
What is an EMI Card

An EMI Card is a pre-approved loan card that is offered by financial institutions. It allows you to convert your big-ticket purchases like the latest TV, smartphone, household applications, etc, into ‘no cost EMIs’, making them affordable without paying extra interest or hidden charges.
What is a Credit Card
A credit card is a financial product issued by banks and financial institutions that lets you borrow funds up to a certain limit. You can make purchases and repay the amount either in full or in parts over time.
EMI Card vs Credit Card: Key Differences
While both EMI Card and credit card allows you to pay for purchases over time, they operate in very different ways.
Factor |
EMI Card |
Credit Card |
Purpose |
Primarily designed for converting high-value purchases into no cost EMIs. |
Offers a revolving credit line for everyday purchases, travel, bill payments, and big-ticket items. |
Credit Limit |
You get a pre-approved loan limit based on your profile, income, and repayment history. |
The credit limit is set by the financial institution after evaluating your income, credit score, and past credit behaviour. |
Usage |
Can be used at select partner retailers and e-commerce platforms for specific high-value purchases, ensuring responsible and goal-oriented spending. |
It is accepted at almost all merchants, both online and offline. |
Eligibility Criteria |
You are required to submit basic KYC documents, PAN card, and proof of income in some cases. |
Banks follow strict approval norms based on your credit score, income, employment, and financial history. |
Budget Management |
Helps manage high-value purchases by breaking them into fixed, predictable EMIs. |
Required active tracking of spending and timely repayments to avoid interest or penalties. |
Credit Card vs EMI Card: When Should you Choose
The choice entirely depends on your financial habits, purchase behaviour, and repayment history.
Choose an EMI Card if:
• You want to make a large purchase without upfront
payment.
• You don’t want the hassle of credit card bills or
interest
rate.
• You are new to the formal credit card system and
want a simple, manageable repayment tool.
Choose a Credit Card if:
• You want to enjoy interest-free credit for a short time.
• You want to earn cashback or rewards.
• You prefer a
single card for multiple purchases.
To Conclude
Choosing between an EMI Card and credit card ultimately comes
down to your spending style and repayment preferences. If you’re
looking for zero interest installments without the stress of monthly
billing cycles, an EMI Card is a smart pick. But if you want
versatility, and rewards, a credit card might suit you better. Make
sure to consider your income, repayment capacity, and spending
habits before making a decision.
Looking to shop smart with
flexible repayment options? Explore the PFIN EMI Card from
Poonawalla Fincorp with a credit limit of up to Rs 5 lakh and with
100% digital process.
Frequently Asked Questions
Do EMI cards affect my credit score?
Yes, timely repayments on your EMI Card can positively impact on
your credit score.
Is an EMI Card better than a credit card?
It depends on your needs. An EMI Card is better if you’re looking to make specific high-value purchases and want a fixed, interest-free repayment plan. A credit card is better if you want more flexibility, rewards, and wider usage.
Can I withdraw cash using an EMI card?
No, EMI cards are not meant for cash withdrawals. They are only
usable at select partner stores for eligible products.
About the Author
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply