Debit Card EMI [Your Ultimate Guide]: Features, Benefits, Eligibility, How To Apply, And More
When was the last time you learned of something that truly redefines the way we handle our expenses? If we were to pinpoint a brand-new way of something like this, it would be Debit Card EMI.
As we all know, debit cards have always been a game-changer, simplifying cash withdrawals and fund management. But did you know that there’s a new entrant in the world of debit cards that’s turning heads – Debit Card EMI?
Let’s learn about it!
Debit Card EMI: What Is It?
Simply put, debit card EMI is a payment option that allows you to make purchases without having to shell out the entire amount upfront.
Rather it processes the payment through a pre-approved overdraft facility provided by the bank.
The bank pays the merchant on your behalf, and you repay the amount in installments through your linked current or savings account later.
The beauty of this feature is that: it lets you make a purchase even if your bank account doesn’t have the full amount required.
Features and Benefits
Now that you know what Debit Card EMI is, let’s get to the brass tacks of what its features and benefits are.
- Flexible Tenure
Debit Card EMI offers flexibility in terms of repayment tenure, which generally ranges from 3 to 36 months, allowing you to choose a repayment plan that suits your financial situation
2.Minimum Transaction Value
To avail of Debit Card EMI, you usually need to make transactions above a minimum value set by the bank or provider.
For instance, Axis Bank requires transactions above Rs. 5,000, while SBI extends this facility for transactions above Rs. 8,000.
3.Maximum Loan Amount
The maximum loan amount available for Debit Card EMI varies between banks.
For example, Axis Bank offers EMI facilities of up to Rs. 1 Lakh, while HDFC Bank provides options for amounts up to Rs. 5 Lakh.
4.No Documentation Required
One of the perks of Debit Card EMI is that you don’t need to submit any additional documents. You can simply opt for it using your existing debit card.
5.Longer Tenure, Lower EMI
Choosing a longer tenure for Debit Card EMI results in lower EMI amounts, making it easier to manage your finances.
If you have extra funds, you can make down payments or partial payments towards your EMIs, subject to the seller’s terms and conditions.
If you’re wondering whether you’re eligible for Debit Card EMI, then you need to check out the following section.
You can easily check your eligibility through SMS banking. Here are some SMS codes for checking eligibility with top Debit card providers in India:
- For HDFC Debit Card EMI, send the text ‘MYHDFC’ to 5676712 via SMS.
- To activate SBI Debit Card EMI, send ‘DCEMI’ to 567676 through SMS.
- If you have an ICICI Debit Card and want to use EMI, send ‘DCEMI’ followed by the last 4 digits of your Debit Card number to 5676766 via SMS.
- For Kotak Debit Card EMI, send ‘DCEMI’ followed by the last 4 digits of your Kotak Debit Card Number to 5676788.
- To enable Axis Bank Debit Card EMI, send ‘DCEMI’ followed by the last 4 digits of your debit card number as an SMS to 56161600.
You can also explore merchant-specific EMI options, like
- Amazon Debit Card EMI
- Flipkart Debit Card EMI
by visiting their respective websites.
How to Apply
Now that you are ready to embrace the convenience of Debit Card EMI, here’s how to apply:
- On the payment page, select ‘Debit Card EMI’ and choose the desired tenure (usually ranging from 3 to 12 months, depending on the vendor or bank).
- Enter your Debit Card details, including CVV, expiry date, card number, and your savings or current account details.
- Provide the OTP received on your registered mobile number.
- Once the transaction is approved, the required amount is credited to your account, and the full payment is made to the merchant.
- This amount is then deducted from your linked bank account every month, as per your chosen tenure.
You can set up automated payments for convenience, but do note that prepayment or loan closure might entail additional charges.
How Debit Card EMI Works
Let’s see how practically Debit Card EMI works with an example:
So, imagine you want to purchase Rs. 18,000 on Amazon and opt for a Debit Card EMI with a 3-month tenure.
After approval, the bank credits Rs. 18,000 to your account, making the payment to Amazon on your behalf.
Over the next three months, you repay this amount in fixed EMIs of Rs. 6,000 each, along with any applicable interest and processing charges.
Remember that Debit Card EMI is a financial innovation that truly empowers consumers to make high-value purchases and buy consumer durables, even when funds are limited in their bank accounts. It combines the convenience of debit cards with the flexibility of installment payments, offering a win-win solution for modern shoppers.
So buyers, the next time you have your eye on any big-ticket item, don’t hesitate to explore Debit Card EMI options. This might just be the financial tool you need to make your dreams a reality.
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