Home Finance Complete Guide: How Debit Card EMI Works

Complete Guide: How Debit Card EMI Works


Have you heard about the new trend of paying through debit cards? Well, let me provide some information on how debit card EMI works.

The debit card EMI is a great way to pay for your purchases. It works differently from the usual credit card EMI because it debits the amount from your savings account directly instead of debiting from your credit limit that your bank conveniently opened for you.

The Debit Card EMI you take is paid through your savings account, not your credit card. You use it for shopping and save yourself a lot of money.

You get all the perks of credit card use without the associated interest rates or fees. There is no limit to how much you can borrow via EMI, so you can get the latest update of your favorite smartphone or laptop.

Debit Card EMI vs Credit Card EMI

In the case of credit card EMI, 50% of the total amount is processed to your credit card immediately and the remaining amount is processed on a monthly or quarterly basis throughout the repayment period in equal monthly instalments. You can make purchases using your credit card on EMI even if it has not been approved for overdraft facility. A blog about the different pros and cons of both options.

Debit card EMI is easier to obtain and you can make purchases using the card despite your credit card having not been approved for overdraft facility. It has cheaper rates of interest and equal monthly instalments.

While it is true that the process of making credit card EMI payments are simpler than making debit card EMI payments, the amount of interest you pay over time will get very expensive.

Who Is Eligible for Debit Card EMI Offer?

Debit Card EMIs May Not Be Available for Flipkart and Amazon Customers: Not all banks offer EMI on debit cards. But some banks are offering EMI on credit cards to Flipkart and Amazon customers. The applicable charges depend upon the bank. In this case, the bank needs to have special arrangements with these e-commerce companies.

Debit card EMI is easier to get and can be arranged via some credit cards available with a variety of banks.

The flexibility of the bank will decide whether they offer you an EMI facility or not.

Merchants prefer to sell their goods on credit card installments rather than on a cash-only basis, so if you have a credit card you can try for an EMI facility more easily than if you only had a debit card.

We help you select the offers on credit cards depending on your profile and usage. You get instant approval on your debit card EMI.

The seller might have the same price for debit or credit card but merchants prefer to sell their goods on credit card installments rather than on a cash-only basis.

If you have a credit card, you might be eligible for flexible EMIs.