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Debit Card EMI: What It Is, How It Works, and How to Apply

Trends - 26 Mar, 2024

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Feeling overwhelmed by the variety of payment options? We understand that managing your finances can be stressful. Debit Card EMIs offer a convenient solution for making larger purchases fit your budget. This blog explores how Debit Card EMIs work and how they can help you simplify your financial life. Ready to learn more? Explore available Debit Card EMI options today.

What is Debit Card EMI?

Debit Card EMI is a convenient option provided by banks and financial institutions. It lets you spread the cost of expensive purchases made with your debit card over multiple months through smaller, regular installments. This can make it easier to afford essential items like electronics, furniture, or appliances without putting excessive pressure on your budget.

How to avail of Debit Card EMI facility

Want to spread out the cost of a purchase? Debit cards now offer EMI options, just like credit cards! Learn how to use this convenient feature and find a detailed guide below.

Steps to Follow:

Check Product Eligibility: Verify if the product you want to buy is eligible for Debit Card EMI. This information is usually available on the product page or can be confirmed with the retailer.
Proceed to Checkout: Once you’ve selected your product, go to the checkout page. Your debit card should be listed as a payment option. Look for the EMI options available.
Choose Tenure and Interest Rate: You’ll be presented with different EMI tenure options and their corresponding interest rates. Carefully review these options and select the one that best suits your financial situation.
Authenticate the Transaction: An additional security step might be required, such as entering a PIN or OTP. This verifies the transaction and prevents unauthorised use.
Confirm Transaction and Account Reversal: After authentication, the final amount will be charged to your debit card. The EMI conversion and account reversal typically take 2 business days. The first EMI installment will be debited 30 days after the reversal.

By following these steps, you can easily access the debit card EMI facility and manage your purchases without financial strain.

Key points to keep in mind before opting for Debit Card EMI

Debit card EMIs offer a convenient way to spread out the cost of purchases over time. However, there are several important factors to consider before choosing this option:

Eligibility and Tenure Options
- Financial institutions set their own eligibility criteria and tenure options for Debit Card EMIs.
- This means you may have various choices depending on your financial situation.
Processing Fees
- There is typically a small processing fee associated with using Debit Card EMI.
- This fee covers the administrative costs of converting your purchase into instalments.
Easy Application
- Debit Card EMIs often involve a simpler application process compared to other financing options.
Limited Availability
- Not all stores or products offer Debit Card EMI.
- Check the platform and product details before making a purchase.
Interest Rates and Charges
- Interest rates for Debit Card EMIs vary between different financial institutions and EMI schemes.
- It’s crucial to compare interest rates and any additional charges before choosing an EMI plan.
Opting for EMI
- You must select the Debit Card EMI option during the checkout process.
- Post-purchase conversion to EMI is generally not allowed.
Debit Card Eligibility
- Contact your bank or check their website to determine your eligibility for Debit Card EMI.
- Eligibility may depend on your bank’s policies and your specific card type.

Overall, Debit Card EMIs can be a convenient way to finance purchases, but it’s important to understand the terms and conditions and compare options before making a decision.

Differences between Credit Card EMIs and Debit Card EMIs

Particulars	Credit Card EMI	Debit Card EMI
Payment Method	Credit card	Debit card
Source of Funds	Credit limit provided by the issuer	Linked bank account
Eligibility	Available to credit cardholders	Available to debit cardholders (subject to bank and card eligibility)
Documentation	May require additional documentation	Usually no additional documentation required
Interest Rates	Varies by credit card issuer	Varies by bank and EMI scheme
Transaction Limit	Depends on the credit card’s available credit limit	Limited by the available balance in the linked bank account
Processing Fee	Applicable	Applicable
Payment Structure	Monthly instalments	Monthly instalments
Conversion Process	Can convert post-purchase	Must opt for EMI at the time of purchase
Availability	Widely accepted	Limited to select platforms and brands
Flexibility	May offer longer tenure options and flexible repayment plans	Tenure options and plans may be more limited
Credit Score Impact	Can impact credit utilisation and credit score	Typically no impact on credit score
Additional Benefits and Rewards	May offer reward points, cashback, or other benefits	Benefits and rewards may vary based on the debit card
Access to Credit	Utilises the credit limit, which may be subject to interest charges and credit approval	Utilises funds from the linked bank account, avoiding credit-based approvals

Steps to Check Your Indian Bank Debit Card EMI Eligibility

In many cases, debit card EMI eligibility can be conveniently verified through your bank’s online portal or a simple SMS. Here’s a helpful reference for some significant Indian banks (be sure to confirm details with your bank as information may evolve):

HDFC Bank: SMS DCEMI to 5676712 - Minimum balance: Rs. 25,000 (subject to change)
ICICI Bank: SMS DCEMI to 5676766 - Minimum balance: Rs. 10,000 (subject to change)
Axis Bank: SMS DCEMI to 5676782 - Minimum balance: Rs. 15,000 (subject to change)
State Bank of India (SBI): SMS DCEMI to 5676767 - Minimum balance: Rs. 25,000 (subject to change)

Note: SMS charges may apply. Please refer to your bank’s official website for the most up-to-date information on eligibility criteria and charges.

Conclusion

Debit Card EMI is a powerful tool for financial management. Allowing debit cardholders to convert larger purchases into manageable monthly instalments offers the benefits of EMI financing without requiring a credit card. This innovative solution is gaining traction as consumers seek convenient and flexible ways to budget for big-ticket items.

FAQ’s

What is Debit Card EMI?

Debit Card EMI lets you split a purchase into monthly instalments using your debit card. It is similar to a credit card EMI but with funds deducted directly from your account.

How do you activate EMI on a debit card?

Debit Card EMI activation is usually not required. Eligibility and activation depend on your bank; check their website or contact them directly.

How do you check debit card eligibility?

Debit Card EMI eligibility varies by bank and may depend on factors like your account balance and banking history. Check your bank’s website or app for details.

How does debit card EMI work?

Debit Card EMI works by converting your purchase into a loan. The total cost is divided into instalments, with interest deducted monthly from your account.

How do you get EMI on a debit card?

Getting a Debit Card EMI typically involves selecting the EMI option during checkout on a participating retailer’s website or app if your card is pre-approved.