Skip to content
Compare Cards

Trick

Use EMI Wisely to Earn Rewards on Large Purchases

Rahul Godeshwar's profile photo Rahul Godeshwar
Reviewed by Darshil Chauhan Last reviewed 5 September 2026 Data verified 5 September 2026

When you convert a purchase to EMI, most banks treat it as a loan transaction and claw back any reward points earned on that purchase. But not always.

The trick: Understand when EMI forfeits rewards, and use cards or purchase methods that preserve them.

How it works:

  1. No-cost EMI: Banks absorb the interest, but the transaction is still coded as EMI — rewards are usually forfeited.
  2. Merchant EMI vs bank EMI: Some banks treat merchant-partner EMIs differently. Check before converting.
  3. Post-purchase EMI: If you buy outright and then convert to EMI via net banking, the original transaction may have already earned rewards.
  4. Cards that reward EMI: HDFC Infinia and Diners Club Black earn rewards on EMI transactions (check terms quarterly).

Step-by-step:

  • For purchases under ₹50,000, pay outright with your best reward card and earn full rewards.
  • For purchases ₹50,000–₹2,00,000, check if your card rewards EMI before converting.
  • If rewards are forfeited, consider paying outright and converting a different spend to EMI instead.
  • Track the reward clawback timeline — some banks deduct points 30–60 days after EMI conversion.

Annual savings: ₹1,00,000 purchase at 3.3% reward rate (Infinia) = ₹3,300 in rewards instead of zero.

Sources

← All tricks