How Does Debit Card EMI Work?

Today with a rapid rise in the number of people shopping and buying products they need online there also has been a huge rise in the number of high amount transactions. This can be a big risk for many people's savings. Understanding this many banks and merchants are now offering them EMI facilities that they can avail of by using their debit card instead of a credit card. Hence not only improving their customer service but also helping them get the best deal they can for their purchases. Here we are going to look at how debit card EMI works and what things you should take note of before using it.

What is Debit Card EMI?

It is a great facility provided by many financial institutions and banks for customers with debit cards to convert their large transactions into EMI which they can pay in instalments over a fixed period. This can help them avoid immediate financial losses or spending and save them some money in the long run. The customer can take debit card EMI facilities on high-priced things such as big TVs, refrigerators, washing machines, furniture, etc.

How does Debit Card EMI work?

The process to avail the EMI on debit card is like that of a credit card where the customer just only needs to select the debit card option instead of a credit card when making the payment and choose the EMI option. The customers need to make sure to maintain the required payable amount in their account beforehand to avoid any failure. After completion of the payment, the amount debited will be credited back to the customer account and they will be charged every month based on their EMI tenure. Customers are also recommended to use a debit card EMI calculator to avoid taking any financial risk before availing an EMI on debit card.

Eligibility of debit card EMI:

The customer needs to check their debit card EMI eligibility facility beforehand to avoid any losses in the future. The eligibility criteria are mainly decided on factors such as income, credit score, and account segment. It can also depend upon the bank's policies. Therefore, it is always recommended to check in with your debit card provider bank and get your debit card EMI eligibility.

Things to take note of before getting EMI on Debit Card:

The following are the various things that you should take note of before getting EMI on debit card:

• There will be no requirement for the customers to maintain a fixed or recurring deposit for availing of this facility.
• Customers can easily foreclose the EMI on their debit card by paying the remaining amount plus foreclosure charges.
• It will depend upon the bank or financial institution to provide a minimum purchase amount that can be availed for debit card EMI.
• Very little to no processing fees but check with your bank or financial institution before taking EMI with a debit card for any processing charges.

Why should you take EMI on Debit Cards?

The following are the various reasons for getting EMI on debit cards:

• The customers don’t need to make any down payment.
• The amount in your bank account is not blocked.
• Get 100% finance facility to get what you need.
• Zero-documentation work.
• Instant distribution of EMI and return of sanctioned amount.

Advantages of EMI on Debit Card vs. Credit Card:

The following are the various advantages of EMI on debit cards vs. credit cards:

• Customers not having credit cards can easily opt for a debit card as an alternative to avail themselves of EMI benefits without losing out on huge financial benefits.
• A debit card EMi is a great way to start your credit score generation and avoid any additional interest charges as well.
• EMI on debit cards is more secure and rarely defaults as they are directly linked to your bank account which helps you make sure that your instalments are made on time without you missing your due dates.

Conclusion:

Not having a credit card for EMI is a worry of the past as today many banks and financial institutes are offering their customers EMI on debit cards that they can use to get their desired product without worrying about paying the costly price in one go. But the customer also needs to make sure to check their debit card EMI eligibility from their registered bank for debit card service availability and take note of the above points before taking an EMI on debit cards to avoid any unnecessary financial risks. The customer can now also use the debit card EMI calculator from Credtify by visiting their official website-https://credtify.com/ and go to the EMI calculator for debit card loan and provide all the required details to get EMI tenure, interest, and amount without any hassle of going through mind blogging calculation.