Credit card: Unity Bank and BharatPe launched India's first EMI credit card, know its benefits

Unity Bank and BharatPe Launch India’s First EMI Credit Card Linked to UPI: Features, Benefits, and Risks

Unity Small Finance Bank, in collaboration with BharatPe and the National Payments Corporation of India (NPCI), has launched India’s first EMI-based credit card on the RuPay network. This innovative product aims to redefine how customers manage big-ticket purchases by offering the flexibility to pay the entire bill at once or convert transactions into convenient monthly installments (EMIs).

A First-of-its-Kind Card Linked to UPI

What makes this card stand out is its integration with the Unified Payments Interface (UPI). Customers can link the card directly to UPI and use it across a wide range of merchants nationwide for everyday purchases. Beyond swiping or tapping, this credit card provides the option of breaking payments into EMIs of up to 12 months, making it easier for users to manage expenses without straining their monthly budgets.

The rewards earned from spending with the card can be redeemed through the BharatPe app, creating a seamless ecosystem for users who already rely on BharatPe’s digital financial services.

No Joining Fee, No Annual Fee

One of the most attractive features of this EMI credit card is its affordability. Unlike many premium credit cards that come with joining charges, annual fees, or foreclosure penalties, this product is completely free of such costs. Customers do not need to worry about hidden charges, which makes it accessible to salaried professionals as well as self-employed individuals.

Additionally, cardholders will enjoy complimentary domestic and international airport lounge access — a perk usually reserved for premium cardholders. Preventive health check-up benefits are also bundled with the card, making it especially useful for customers who value healthcare facilities.

Transparent EMI Structure with Early Repayment Option

According to Unity Bank and BharatPe, the EMI credit card has been designed with transparency in mind. All charges are clearly disclosed upfront, ensuring that customers know exactly what they are paying for. Importantly, if a cardholder wishes to pay off the EMI before the due date, they can do so without any penalty. This flexibility ensures that users have full control over their repayment schedules.

Applications for the card can be made conveniently through the BharatPe app, making the onboarding process quick and digital-first.

Benefits and Potential Pitfalls

While the card offers significant advantages, experts caution that it must be used wisely. The option to convert almost any large purchase into EMIs can encourage impulsive spending. If not managed carefully, customers may find themselves burdened with multiple EMI payments each month, leading to financial strain.

Therefore, financial advisors recommend that users evaluate their repayment capacity before opting for EMI conversions. Using the card responsibly can help manage big-ticket expenses, but careless spending could increase debt obligations.

Who Should Consider This Card?

• Frequent travelers who value free airport lounge access.

• Health-conscious individuals who will benefit from complimentary preventive health check-ups.

• Professionals and entrepreneurs who want flexible repayment options without annual fees.

• Digital-first users comfortable with applying and managing their card via the BharatPe app.

Final Thoughts

India’s first EMI-based credit card by Unity Bank and BharatPe is a groundbreaking innovation that combines the power of UPI with the flexibility of EMIs. With no annual charges, free health and travel perks, and transparent repayment terms, the card has the potential to attract a wide customer base.

However, users must remember that easy EMI options can become a double-edged sword if spending is not controlled. Used responsibly, this card can be a valuable tool for financial management. Misused, it could lead to debt accumulation.

In short, the Unity Bank–BharatPe EMI credit card is a bold step toward reshaping India’s credit ecosystem, giving customers both convenience and flexibility — provided they spend smartly.