Online shopping has become a popular and convenient way to buy products and services. However, sometimes the price of the desired item may be too high to pay at once. In such cases, opting for an EMI (equated monthly installment) option can be a smart choice. EMI allows you to pay for your purchase in small and affordable monthly installments over a fixed period of time.
Traditionally, EMI was only available for credit card users. However, in recent years, many banks have started offering EMI on debit cards as well. This facility allows debit card users to convert their high-value transactions into easy installments without blocking their funds or requiring any documentation or down payment.
Debit card EMI is a payment method that allows you to make purchases without paying the amount in full. The payments are instead processed and completed via the pre-approved overdraft facility. The payment to the merchant is thus borne by the bank on your behalf, and instead of making a one-time payment you repay in installments through the current or savings account linked to your debit card.
With this facility, you can make a purchase, even if you do not have the full amount in your bank account. However, you need to check your eligibility and available limit for debit card EMI before making a purchase.
How to check eligibility and limit for debit card EMI?
To check your eligibility and limit for debit card EMI, you can either visit the bank’s website or app, or send an SMS or give a missed call to the bank’s number from your registered mobile number. Different banks have different ways of checking eligibility and limit for debit card EMI. Here are some examples:
- Axis Bank: SMS DCEMI to 56161600
- State Bank of India: SMS DCEMI to 567676 from registered mobile number
- HDFC Bank: SMS MYHDFC to 5676712 from registered mobile number
- ICICI Bank: SMS DCEMI to 5676766
- Federal Bank: SMS DCEMI to 5676762 or give a missed call to 7812900900
- Kotak Mahindra Bank: SMS DCEMI to 5676788
How to avail debit card EMI?
To avail debit card EMI, you need to follow these steps:
- Visit the merchant store, website, mobile site or mobile app.
- Choose your favourite product and proceed to payment.
- Choose ‘ICICI Bank Debit Card EMI’ option or similar option depending on your bank.
- Choose between tenures 3 months, 6 months, 9 months and 12 months or more depending on your bank.
- For online purchase, authorise the transaction using your debit card details like debit card number, expiry date and CVV.
- Authenticate yourself using an OTP or 3D Secure PIN to complete the purchase.
What are the benefits of debit card EMI?
Debit card EMI has several benefits such as:
- No documentation
- No need for security deposit or down payment
- One click transaction and conversion to EMI
- Easy re-payments from linked savings/current account
- No blocking of funds in your account
What are the charges and interest rates for debit card EMI?
Debit card EMI may involve some charges and interest rates depending on your bank and the merchant. Some banks may charge a processing fee, GST, cancellation fee or pre-closure fee for debit card EMI. The interest rates may vary from 14% to 18% per annum depending on the bank, tenure and amount. Some merchants may also offer no-cost EMI where the interest is waived off by the merchant as a discount.
Which banks and merchants offer debit card EMI?
Currently, only HDFC Bank, SBI, Axis Bank, ICICI Bank, Federal Bank and Kotak Mahindra Bank offer debit card EMI facility to their customers. Together, these banks have the largest customer base, many of whom are also among registered online shoppers.
Debit card EMI can be availed across selected transactions that cross the minimum value which may vary across all providers. For instance, with Axis Bank, you can avail this facility for transactions above Rs. 5,000, whereas SBI extends this facility to transactions above Rs. 8,000. Similarly, the maximum amount may also vary across all lenders. For instance, Axis Bank Debit Card EMI facility can be availed for up to Rs. 1 Lakh, whereas for HDFC Bank it can be up to Rs. 5 Lakh.
Debit card EMI can be used to buy a variety of products and services from various online and offline merchants. Some of the popular online merchants that offer debit card EMI are Amazon, Flipkart, MakeMyTrip, Paytm, Croma, Reliance Digital, BYJU’s, etc.
Conclusion
Debit card EMI is a convenient and flexible way to shop online without worrying about the price or the funds in your account. It allows you to pay in small and affordable installments over a period of time. However, you should also be careful about the charges and interest rates involved and compare them with other payment options before opting for debit card EMI. You should also check your eligibility and limit for debit card EMI before making a purchase. Debit card EMI can help you buy your desired product or service without compromising on your budget or savings.