Credit cards, loans and EMIs

When you borrow, you pay back the amount plus interest. An EMI (Equated Monthly Instalment) is a fixed monthly payment that covers both.

Credit cards

Pay the full bill by the due date and you pay no interest. Pay only the minimum due and the rest is charged interest that can exceed 36–42% a year.

“No-cost EMI”

Often the interest is hidden as a lost discount or processing fee. Compare the EMI total with the cash price.

Credit score

Your CIBIL score (300–900) shows lenders how reliably you repay. Paying on time and using a small part of your credit limit keeps it healthy.

Good vs risky borrowing

Borrowing for something that builds value (like education) can make sense. Borrowing for wants you can’t afford usually doesn’t.