💳 Balance Transfer (BT)

Meaning:
Move your outstanding balance from one credit card to another card (usually to get a lower interest rate).

✅ Why people use it

✔ Reduce interest burden
✔ Consolidate multiple card dues
✔ Get time to repay
✔ Special low-interest or 0% offers

🧭 How it works

1. Apply for a card that offers Balance Transfer
2. Request transfer amount
3. New bank pays your old card balance
4. You repay the new card under BT terms

💰 Charges involved

• Processing fee (often 1%–3%)
• Promotional interest rate for limited period
• Standard rate applies after promo ends

👍 Good when

✔ You’re paying very high interest on another card
✔ You have a clear repayment plan
✔ Promotional rate is significantly lower

⚠️ Be careful if

❌ You keep spending on the new card
❌ You miss EMI or minimum payment
❌ Promo period ends before repayment

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📆 EMI on Credit Card

Meaning:
Convert a purchase or outstanding amount into fixed monthly installments.

Types of EMIs

1️⃣ Purchase EMI

Convert a shopping transaction into EMIs.

Example: Buy a course laptop → convert ₹30,000 into 6 EMIs.

2️⃣ Balance Conversion EMI

Convert existing credit card dues into EMI plan.

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🧭 How EMI works

✔ Bank divides amount into monthly payments
✔ You pay fixed EMI every month
✔ Interest may be charged depending on offer

💰 EMI Components

• Principal amount
• Interest rate
• Processing fee (sometimes)
• GST on interest