What is Debit Card EMI?

Debit Card EMI is a facility offered by banks that allows debit cardholders to convert their high-value purchases into easy EMIs, just like a credit card EMI option. At the time of the transaction, the entire amount is not required to be in the account. The amount is first debited from the bank account and then credited back after a few days. This facility can be availed for expensive purchases over a reasonable tenure.

How Does Debit Card EMI Work? How To Apply?

EMI facility is available for large purchases on ecommerce sites and in-store purchases for debit card holders.

While credit cards offer many benefits and discounts, not everyone in India has one. However, almost all savings bank account holders in India have a debit card, a more accessible payment method. Fortunately, debit card holders no longer need to miss out on the EMI facility that credit card holders enjoy. They can now also avail themselves of easy EMI options for big-ticket purchases.

Innovation in the ecommerce industry has led to introduction of the Debit-Card EMI facility, which aims to encourage debit card holders to shop more. EMI options were initially only available to credit card holders and were viewed as loan products based on their credit limits. However, lenders realized that customers’ money was idle in their bank accounts and recognized the potential of the Debit EMI facility.

Today, with the Debit Card EMI facility, debit card holders can enjoy the benefits of easy EMI options on their purchases without worrying about high-interest rates or long loan approval processes. They can spread the cost of their purchases over several months, making it easier for them to manage their finances. This latest addition to the ecommerce industry will undoubtedly make shopping more accessible and enjoyable for millions of debit card holders across India.

Understanding the Debit EMI Facility?

The Debit Card EMI facility is an option that allows users to convert their debit card purchases into easy EMIs, similar to the credit card EMI option. Account holders are eligible for this facility, which is provided as a pre-approved overdraft facility. When you make a purchase using your debit card, the bank pays the seller on your behalf, and you repay the amount via EMI through your linked savings or current account.

This payment option enables you to make purchases even if you do not have the full amount in your bank account. Here’s an example to help illustrate the process:

Suppose you want to purchase online for Rs. 50,000 using the Debit EMI option with a 6-month repayment period. After the bank and merchant approve, Rs. 50,000 will be credited to your bank account, and a direct payment to the seller will be made from your account. You will then repay the Rs. 50,000, along with applicable interest, in six equal monthly installments directly to the bank from your bank account.

With the Debit EMI facility, you can easily manage your finances and make big purchases without worrying about the immediate payment of the full amount. The ability to convert purchases into easy EMIs has made shopping accessible and enjoyable for millions of debit card users.

What are the banks in India that offer debit EMI options and which e-commerce platforms accept these payments?

Several banks in India offer Debit EMI facilities, including ICICI Bank, HDFC Bank, Axis Bank, State Bank of India (SBI), Kotak Mahindra Bank, and Yes Bank. These banks provide the facility as a pre-approved overdraft that enables customers to convert their purchases into easy EMIs using their debit cards.

In addition, many popular ecommerce platforms in India, including Amazon, Flipkart, Paytm Mall, and Myntra, support Debit EMI options for their customers. This payment method has become increasingly popular, allowing customers to purchase high-value items and pay for them over several months, making them more affordable.

Overall, Debit EMI options have made shopping more accessible and convenient for customers, enabling them to purchase without paying the full amount upfront.

Important things to know about Debit EMIs?

  • Debit-card EMI options are now being offered by several banks in India, including HDFC Bank, ICICI Bank, State Bank of India, Axis Bank, Kotak Mahindra Bank, and Yes Bank.
  • Eligible transaction amounts and tenures can vary by bank and by the transaction. For example, HDFC Bank offers Debit EMI on transactions starting from Rs. 10,000, with tenures ranging from 3 to 12 months. ICICI Bank, on the other hand, offers Debit Card EMI on transactions starting from Rs. 3,000, with tenures ranging from 3 to 18 months.
  • The processing fees for Debit EMI options vary by bank and transaction but are generally nominal.
  • Some banks may require additional documentation, such as proof of income, to avail of the Debit Card EMI option.
  • Debit EMI options in India are available on select ecommerce platforms, brands, and products. For example, HDFC Bank offers Debit Card EMI on select products on Amazon, while ICICI Bank offers Debit Card EMI on select products on Flipkart.
  • Interest rates for Debit Card EMI options vary by bank and transaction but typically range from 12 to 24% per annum.
  • It is important to note that Debit Card EMI options must be opted for at the time of purchase. There is typically no option to convert a transaction into EMI post-purchase.
  • The Debit EMI option is only available on select debit card variants of a bank. Users should confirm whether their debit card variant is eligible for the offer before purchasing.

The author writes about fintech, banking, and future of SAAS services. He works as an SEO analyst at Easebuzz, so if you're looking for an account that tracks India's fintech scene, you should check out his Easebuzz blog.