How debit card EMI works
Using a debit card to pay for instalments has become increasingly popular in India. This payment method, known as debit card EMI, is a zero-interest instalment plan offered by various banks and financial institutions. Customers can use the feature to purchase a wide range of products and services, from electronics to fashion items. The repayment period can vary from 3 to 24 months, depending on the bank. Checking eligibility and calculating monthly instalment amounts is easy using the bank’s online calculator tool.
Debit EMI is a convenient payment option that allows customers to avoid the hassle of applying for a separate loan or credit card for large purchases. Some banks offer cashback or other rewards when customers use their debit card EMI to purchase.
The feature is available online and offline, making it easy for customers who prefer to shop either way. Overall, debit EMI is a useful and cost-effective payment option for customers looking to manage their expenses and stay within their budget. Its popularity in India continues to grow, with more banks and financial institutions offering this payment feature.
How to Avail the Debit Card EMI: A Step-by-Step Guide
- To avail of the Debit Card EMI facility, follow these steps:
- Check if the product you want to purchase is eligible for Debit Card EMI. This information is usually available on the product details page of the ecommerce website.
- Proceed to the checkout page and select your debit card as payment.
- Choose the EMI option and select the desired tenure and interest rate. Remember that the tenure options and interest rates may vary depending on the transaction amount and the bank you hold the debit card with.
- Once you have selected the EMI option, you must enter additional authentication as a PIN or OTP to confirm the transaction.
- Your debit card will block the entire transaction until the EMI conversion is complete. The conversion and account reversal usually occur within two working days of the transaction date. The first EMI installment will be deducted from your account 30 days after the account reversal.
- It’s important to note that the Debit Card EMI facility is only available on select ecommerce platforms, brands, and products. Additionally, the offer is only available on particular debit card variants of a bank, so it’s advisable to confirm eligibility before making the purchase.
Advantages of using a Debit EMI instead of a Credit EMI?
1. Debit Card EMI is a payment option that allows you to make purchases using your debit card and repay them in installments. Here are some advantages of using Debit Card EMI over Credit Card EMI, according to the latest data available on Google:
2. Debit Card EMI is more accessible for people who do not have a credit card or have a lower credit score, making it a great option for making large purchases and paying them off over time.
3. Using a Debit Card EMI can also help build your credit score, as it is considered a loan and reported to the credit bureau.
4 Since the EMI amount is auto-debited from your savings or current bank account every month, there is a lower chance of missed payments or defaults than using a credit card.
To check your eligibility for Debit Card EMI, you need to follow these steps:
Contact your bank:
The first step is to contact your bank and ask them if they offer Debit Card EMI facilities on their cards.
Check your eligibility:
Once you know that your bank offers Debit EMI, you can check your eligibility by logging into your account online or visiting the bank’s branch. You may need to provide basic information such as your income, employment status, and credit score.
Submit documents:
If you meet the eligibility criteria, you will be asked to submit some documents such as your ID proof, address proof, and income proof.
Apply for Debit Card EMI:
Once your documents are verified, you can apply for Debit EMI and choose the product you want to purchase. If you are eligible, the bank will approve your application and provide you with the EMI facility.
Note that the eligibility criteria and application process may vary from bank to bank. It’s always best to check with your bank for specific details.
Debit EMI: Eligibility and SMS Codes for Various Indian Banks
HDFC Bank Debit Card EMI Eligibility criteria:
Minimum savings account balance of Rs. 25,000, and the customer should have a minimum of 6 months transaction history on their debit card.
SMS Code: SMS DCEMI to 5676712
ICICI Debit Card EMI Eligibility criteria
The customer’s account must be KYC compliant and have a minimum balance of Rs. 10,000.
SMS Code: SMS DCEMI to 5676766
Axis Bank Debit Card EMI Eligibility criteria
The customer’s account must be KYC compliant and have a minimum balance of Rs. 15,000.
SMS Code: SMS DCEMI to 5676782
State Bank of India (SBI) Debit Card EMI Eligibility criteria
Minimum balance of Rs. 25,000 in the savings account and a debit card with a minimum transaction history of 6 months.
SMS Code: SMS DCEMI to 5676767
Kotak Mahindra Bank Debit Card EMI Eligibility criteria
The customer’s account must be KYC compliant and have a minimum average quarterly balance of Rs. 10,000.
SMS Code: SMS DCEMI to 5676788
Yes Bank Debit Card EMI Eligibility criteria
Minimum savings account balance of Rs. 25,000, and the customer should have a minimum of 6 months transaction history on their debit card.
SMS Code: SMS DCEMI to 5676789
IDBI Bank Debit Card EMI Eligibility criteria
Minimum savings account balance of Rs. 15,000; the customer should have at least 3 months of transaction history on their debit card.
SMS Code: SMS DCEMI to 5676777
Federal Bank Debit Card EMI Eligibility criteria
The customer’s account must be KYC compliant and have a minimum balance of Rs. 25,000.
SMS Code: SMS DCEMI to 5676762
Please note that the eligibility criteria and SMS codes may vary from bank to bank. It’s always best to check with your bank for specific details.
