Neutral impactSector
Credit card issuers push EMI loans to counter revolver model misfire
Economic Times 7 hrs ago·22 Sept 2026, 6:57 pm
Credit card issuers are increasingly turning ordinary purchases into EMI (equated‑monthly‑installment) loans. With fewer card‑holders carrying balances month‑to‑month, the growth of interest‑bearing receivables has lagged behind the rise in transaction volumes, prompting banks to package more purchases as instalment plans and to expand personal‑loan‑on‑card products.
For investors, this shift signals a change in the revenue mix of the sector. Fee income from EMI processing and loan‑on‑card services can offset slower interest earnings, but it also introduces new credit‑risk dynamics and may affect profit margins. Monitoring how quickly issuers can grow fee‑based income relative to traditional interest income is key to gauging earnings outlooks.
Going forward, watch data on balance‑carry rates, the uptake of EMI products, any regulatory guidance on loan‑on‑card offerings, and earnings updates from major issuers for clues on how the model is performing.
Excerpt from Economic Times
Credit card issuers push EMI loans to counter revolver model misfire Credit card issuers push EMI loans to counter revolver model misfire With a smaller share of customers carrying balances month to month, interest-bearing receivables are growing more slowly than transaction volumes, pushing issuers to convert…Read the original at Economic Times
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- Category: Sector.
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A routine update. Use the price and stock snapshot to gauge how the market is responding.
