How to Pay Personal Loan EMI with a Credit Card in 2025: A Complete Guide

Name: Investkraft
Address: 137, KD Block, Ground Floor, Pitampura, Delhi, 110034, IN
Telephone: 9797971876

Jul 1st 2025

Personal Loan

If you are wondering how to pay personal loan EMI through credit card, then this article is for you. We recommend that you read the entire article before making your decision. There are certain advantages and disadvantages of using credit cards to make personal loan EMI payments, and we will discuss this in more detail. We will also discuss associated costs, interests and other alternatives that can help you make an informed decision. Now, let us begin with the very basic question.

Can You Pay Personal Loan EMI through Credit Card?

And the answer is Yes! But, there are some “ifs” and “buts” attached that you must know before paying your EMI through your credit card. Now, various platforms like PayTM, PhonePe, Google Pay and InvestKraft bill payment portal support payment of personal loan EMI through credit card, but we recommend that you check with your lender for specific policies, which may attract additional 1-3% convenience or processing fees.

Why Use a Credit Card for EMI Payments?

Paying your personal loan EMI through credit card can be beneficial in certain situations, such as:

Temporary Cash Flow Issues: If you do not have the money in your account to pay for EMI, then you can use your credit card to pay the EMI. This will help you to avoid missing an EMI payment, and thus prevents penalisation like financial penalties and negative impace on your CIBIL score.
Interest-Free Grace Period: Most credit cards offer a 20-50 day interest-free period, allowing you to pay the EMI without interest if cleared before the due date. We recommend that you keep track of your due dates either through an app or by maintaining a diary.
Potential Rewards: Some credit cards offer cashback or reward points for transactions. Check with your credit card company for such policies and details.

Please note that we do not recommend this approach, until and unless there is no other alternative. Paying your personal loan EMIs through credit cards involve huge associated costs and risks, such as should be used sparingly due to associated costs and risks, such as high credit card interest rates, and chances of penalisation if you fail to repay before the due date.

Steps on How to Pay Personal Loan EMI through Credit Card

Let us understand step-by-step process to pay your personal loan EMI through credit card:

Step 1: Choose a reliable and trusted payment portal like the InvestKraft BBPS portal

You can click on the link here to open the portal

Step 2: Click on “More” and choose “Loan”

Step 3: Select your lender from the dropdown

Step 4: Once selected, you have enter your customer number / account number

Step 5: Once entered, you need to click on “Confirm”

Once done, you will be taken to BBPS payment portal, wherein you can select credit card to complete your payment.

Please note that you can also pay personal loan EMI through credit card on other trusted platforms like PhonePay, Cred, Google Pay, PayTM and others. However, as mentioned earlier, do always check with your lender, for any additional charges that you may incur when you are paying for your personal loan EMI through credit card.

Costs and Charges for Personal Loan EMI through Credit Card

Now, let us understand various charges that you may incur when you pay your personal loan EMI through a credit card:

Processing Fees: Many platforms charge a 1%-3% fee on the transaction amount. For example, an INR 10,000 EMI can attract an INR 100 - INR 300 fee.
Credit Card Interest Penalty: If you do not clear the credit card balance before the due date, penalty interest rates (usually 24%-36% annually) will apply, significantly higher than personal loan rates (usually 10%-15%).
Cash Advance Fees: Some lenders may consider EMI payments as cash advances, which include additional fees and immediate interest. Please check with your credit card company for any such advances.

Pros and Cons of Paying Personal Loan EMI by Credit Card

Let us clearly understand the pros and cons of using your credit card to pay for personal loan EMI from the table below:

Pros (Advantages)	Cons (Disadvantages)
Easy and Quick: You can pay through mobile apps easily.	Extra Charges: A processing fee of 1% to 3% may be added to your financial stress.
Helpful in Tough Times: Useful if you do not have the money at the time of EMI payment.	Less Credit Left: A big EMI payment reduces your card limit.
Interest-Free Period: If you pay the full card bill on time, you can avoid extra charges.	Higher Interest: If you do not pay your card bill on time, the interest is very high. Again, it will add financial strain.
Reward Points or Cashback: Some cards give rewards, but this is not always the case for EMI payments.	Debt Can Grow: If you miss payments, your debt can grow quickly due to high interest.
Credit Score Improvement: If you pay your EMI through a credit card and also pay your credit card bill before date, then it can positively affect your CIBIL score.	Credit Score Negative Impact: If you do not pay your credit card bill on time, then your CIBIL score can be negatively affected and thus you will not be able to get loans in the future.

Eligibility Criteria to Use Credit Card for EMI Payments

To use a credit card for EMI payments, you must meet these conditions:

Your lender and payment platform must allow credit card payments for EMIs.
Your credit card must have enough available limit to cover the EMI and processing fees.
You should have a plan to repay the credit card balance before the due date to avoid high interest charges.

Alternatives to Paying EMI with a Credit Card

You can consider the following alternatives if the costs or risks of using a credit card seem high:

Loan Foreclosure: Use savings or other funds to partially or fully prepay your loan, reducing interest costs. Please note that some lenders charge foreclosure fees, so check before you proceed with this option.
Loan Restructuring: You can discuss and negotiate with your lender to extend the loan tenure or lower the EMI amount to make payments more manageable. However, for that, you need to show a proper reason for restructuring.
Balance Transfer: You can transfer your loan balance to a lower-interest loan or a credit card with lower interest rates. Discuss with your lender and understand the terms and conditions before proceeding with this option.
Borrow from Family or Friends: If possible, you can borrow from your family or friends, which can help you repay your EMI without additional costs.

EMI Calculator for Credit Card Payments

The following formula is used to calculate credit card payment:EMI = [P x R x (1+R)^N] / [(1+R)^(N-1)]

Where:

P = Principal loan amount
R = Monthly interest rate (annual rate ÷ 12)
N = Loan tenure in months

Example Calculation:

For a INR 1,00,000 loan at 12% annual interest over 12 months:

Monthly interest rate = 12% ÷ 12 = 1% = 0.01
EMI = [100,000 x 0.01 x (1+0.01)^12] / [(1+0.01)^(12-1)] ≈ INR 8,884
Add a 2% processing fee: INR 8,884 x 0.02 = INR 177.68
Total cost per EMI: INR 8,884 + INR 177.68 = INR 9,061.68

You can use the InvestKraft EMI calculator to check your EMIs. We recommend that you use this calculator before taking a loan, as it will help you with your financial planning.

Conclusion

With detailed steps already mentioned on how to pay personal loan EMI through a credit card, please note that these are some of the very important points that you must consider when paying your personal loan EMI through a credit card:

Paying through a credit card should always be considered as an alternative, short-term solution. You should never make it an every-time solution. In case you are not able to arrange money for EMIs, you should consider options like loan refinancing and other financial planning.
Make sure you pay the full credit card bill before the due date, as if you do not pay the amount before the due date of every month, you will be penalised, and it can severely affect your CIBIL score.
We recommend that you use a credit card for emergency situations like severe, unavoidable financial crunch, or if you can repay easily before the due date, which will ultimately improve your credit score.

Frequently Asked Questions

Can I pay my mortgage EMI with a credit card?

Most mortgage lenders do not accept direct credit card payments. Using a cash advance for mortgage EMIs can result in high fees and immediate interest. You can check with PayTM, PhonePay for options to pay mortgage EMI through credit card.

Can I transfer a personal loan to a balance transfer credit card?

Some credit card issuers allow transferring loan balances, but many restrict balance transfers to credit card debt only. Check with your card provider for eligibility and terms.

Is paying EMI with a credit card a good idea?

It depends on your financial situation. If you can clear the credit card balance within the interest-free period, then it is a short-term solution to avoid loan default. However, high fees and interest rates make it risky for long-term use.

Do apps offer rewards for EMI payments via credit card?

Some apps, like Cred, may offer cashback or reward points for loan repayments, but this varies by platform and card. Always review the terms to confirm eligibility.

What happens if my credit card payment for EMI is declined?

If your credit card lacks sufficient limit or the lender does not allow the payment, the transaction may fail.

Can I pay my personal loan EMI through credit card?

Yes, you can pay your personal loan EMI through credit card, however, make sure that you repay your credit card bill before the due date to avoid any penalties.