Federal Bank EMI: what it really costs

Interest, processing fee and closing charges from Federal Bank's own documents, checked on 26 October 2026.

Merchant / Instant EMI

Credit card EMI at checkout

Interest: 15.99% a year
Processing fee: 1% of the amount, at least ₹99, plus GST
Closing early: 3% of the amount still owed, plus GST

Source: www.federal.bank.in, www.federal.bank.in

Post-purchase EMI conversion

Credit card, converted to EMI after buying

Interest: 18% a year
Processing fee: 1% of the amount, at least ₹99, plus GST
Closing early: 3% of the amount still owed, plus GST
Smallest purchase: ₹2,500

Source: www.federal.bank.in, www.federal.bank.in

Why no cost EMI is not free

Every card EMI is a loan. On a no-cost EMI the shop gives a discount equal to the bank's interest, so the instalments add up to the price.
The bank still bills 18% GST on that interest every month.
Most banks charge a processing fee, plus GST, to set up the EMI.
Sale offers often give a bigger discount for paying in full, which you give up by choosing EMI.

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