How does an EMI on Debit Card work

Date: 14th October 2024 | Read time: 3 Minutes

Today, with cashless transactions becoming popular, many banks have started offering EMI options for debit cards to make shopping easy for those customers. You can avail of products and services through instalments without requiring any credit card using the facility of Debit Card EMI. Let us find out how this facility works as well as who all can benefit from it.

1. Purchase: Select the product and select EMI through debit card as the mode of payment.
2. EMI Tenure: You can select the tenure for which you want to pay this amount, and that can be from 3 months up to 24 months.
3. Auto-debited: Your instalment will be auto-debited directly from your account.

Split your purchase cost into equal monthly payments over a fixed tenure when you choose the EMI option on your debit card at the time of checking out. Every month, EMI amount is drawn directly from your savings account till the full payment is done.

1. Purchase: Select the product and select EMI through debit card as the mode of payment.
2. EMI Tenure: You can select the tenure for which you want to pay this amount, and that can be from 3 months up to 24 months.
3. Auto-debited: Your instalment will be auto-debited directly from your account.

This facility is available to selected/ eligible customers. Normally, a customer should be in one of the following categories:

• Someone who has received a pre-approved offer from the bank
• Someone who maintains a minimum balance or average monthly balance
• Someone with a good transaction history and a long association with the bank

You can check your eligibility by logging into your bank's mobile application or contacting the customer service.

Once the option of EMI is selected from any lender, the monthly instalments will get automatically deducted from your account. Ensure there's enough balance to make those EMI payments, lest you face penalties.

[Also Read: All you need to know about Debit Cards]

• Processing Fees

  Banks charge a processing fee at the time of converting a purchase to EMI. This differs from bank to bank, sometimes basis customer profile this fee can be waived off

• No cost EMI

  Some banks offer no-cost EMI options, meaning you won't pay any interest on the instalment, though there may still be processing fees involved.

• Tenure Flexibility

  Choose a tenure that coincides with your repayment ability, and it's quite evident that longer tenures bring higher costs in terms of interest.

Debit Card EMIs are an excellent alternative to credit card EMIs, offering flexibility and a convenient way to manage payments. They allow consumers to break down the cost of larger purchases into manageable instalments. Look out for features like no-cost EMI options, where you might pay no interest, as well as varying processing fees. Always check with your bank for these accessible payment solutions!

T&C Apply.