Debit Card: How does Debit EMI work?

Getting a credit card is not always easy as it requires a good credit score. If you don't have a good credit score, you cannot get a credit card with higher credit limits. Also, the banks may provide credit cards at higher interest rates and charges. Thus, there are chances of rejection of a credit card application; however, if you want to make the purchase using EMI, you can still do it without having a credit card.

What is debit EMI?

You can use your debit card to make any purchase above the balance in your bank account by using the overdraft facility of your debit cards—this facility to make the payment in easy installments known as debit EMI.

How does Debit EMI work?

• Several banks such as HDFC, SBI, Axis, ICICI, Federal and Kotak Mahindra allow you to avail the pre-approved overdraft facility on your debit cards.
• You can use the debit EMI option on merchant websites such as Flipkart, Amazon, Paytm, Makemytrip etc.
• Banks automatically deduct the EMI every month from the bank account.
• To avail the debit EMI on your debit cards, you need to make a minimum purchase, which varies from bank to bank. For instance, you need to make a minimum purchase of Rs. 8000 on your SBI and Kotak Mahindra debit card.
• Banks charge interest on the debit EMI. While you can avail the zero-cost EMI, with no extra charges; however, under the zero-cost EMI, banks will automatically adjust the interest amount in the purchase amount.

Features of Debit EMI:

• You don't require any documents to avail the Debit EMI.
• You can avail the EMI on one click at the time of making the payments on your purchase.
• Zero-cost EMI is available on specific products, and you can check the list of products and offers to avail the zero-cost EMI.
• Debit card EMI facility is available on multiple merchandising websites such as Amazon, Flipkart and Paytm.
• You can choose the tenure of paying the EMI ranging between 3 months to 12 months. However, you must check the details of your debit card.
• If you want to close the EMI facility on your debit cards before the determined tenure, you can do so by paying the penalty charges, which may vary from bank to bank.
• You must have sufficient balance in your account to avail the debit card EMI.

Eligibility for Debit Card EMI: You can check the eligibility for debit card EMI on the debit card, you can check the eligibility of loan and bank will inform you about the Debit card EMI option if you are eligible for it.

• To check the eligibility on your ICICI debit card by sending SMS DCEMI<space><last four digits of Debit Card number> to <5676766>.
• You can also check the eligibility on Flipkart by sending an SMS DCEMI to 57575.
• To know about your eligibility on Kotak Mahindra Bank, send DCEMI<space><last four digits of Debit Card number> to <5676788>
• You can avail the EMI facility on HDFC card with a nominal fee of Rs. 99+ GST.

Conclusion: If you have made any big purchases, you can make the payments using a Debit card EMI option. You can choose the tenure of paying EMI as per your requirement. Thus, it reduces the burden of making lump-sum payment at the time of purchase.