Online shopping has seen an exponential surge, which has led merchants to develop innovative and easier ways to help people make payments. The way people make purchases today no longer requires them to pay upfront in cash. For example, credit card purchases are one prevalent method to make payments in installments. However, there exists one more option for people who do not have credit cards or do not enjoy a high limit on credit cards, i.e., EMI on a debit card.
A debit card works like an individual’s personal account that gets debited directly whenever a purchase is made through it. This means that there is no limit associated with a debit card as such. Whatever amount is available in one’s bank account is simply the amount available for purchase.
Under debit card financing, the individual makes a regular purchase in which the entire amount first gets debited from the debit card at the time of transaction. At a later stage, the amount is credit back, and a loan is created. This amount can be repaid at the pre-decided interest rate in the form of loan EMIs. It is possible to assess this amount by checking with an EMI calculator.
Suppose an individual is trying to purchase on a website; he can select the debit card EMI option on the payments page. He needs to enter his debit card details and validate them through an OTP. Once this is done, the purchase is made through an EMI.
EMI payments through debit cards come with an EMI rate attached to them, which differs from bank to bank. It also depends upon the final balance in one’s account and the relationship one enjoys with their bank.
It is important to note that not all transactions are eligible for payments through EMI via debit card. It all depends upon the e-commerce site and the tie-up. For example, some websites may allow their customers to convert transactions above Rs. 2000 into EMIs, while others may allow transactions only above Rs. 5000 to be converted into EMI purchases.
While availing EMI on debit cards depends on many factors, some banks simply auto-approve this facility for their customers. For instance, Flipkart users can check whether they are eligible for this facility by simply sending an SMS on a number. If eligible, debit card EMIs are shown as a mode of payment on the checkout page. But it is crucial to ensure that the SMS is sent from the same mobile number that is registered with the bank account to help the e-commerce portal verify and make debit card satta matka EMIs an available option during final payment.
Some of the other charges associated with a debit card EMI option other than the regular interest rate charged are processing fees and foreclosure charges, which may vary from bank to bank.
Debit card EMIs are gradually becoming the go-to option for online shoppers because of the various benefits associated with it, such as ease of access, i.e., not applying for a debit card separately as is the case with credit cards and the absence of any limit. The transactions can be for as much amount as is available in one’s bank account.