Summary

• Debit Card EMI allows eligible customers to convert high-value purchases into affordable monthly instalments without using a credit card.
• It enables you to buy products or services immediately and repay the amount over a chosen tenure through your bank account.
• It offers flexible repayment periods that make it a popular financing solution for planned purchases.

Gone are the days when EMIs or Equal Monthly Instalments were exclusively associated with loans or credit cards. If you’re asking, “can we do EMI with a debit card?” then the answer is yes! Select Indian banks – such as IndusInd Bank – offer their customers the debit card EMI option.

So, how does this payment method work, and why should you opt for it? Let’s find out.

What is EMI on Debit Card? 

EMI on a debit card is a payment facility that lets you convert high-value purchases into easy, bite-sized instalments, without needing a credit card. It works just like a standard EMI but uses your savings or current account instead of a credit limit. 

Many people believe EMIs are a credit-card-only feature, but debit card EMIs have opened up the instalment option to a much larger audience. With this facility, you can buy now and pay later, using the balance from your linked bank account.

How Does Debit Card EMI Work? 

Here’s how the debit card EMI process generally unfolds: 

Step 1: Check Eligibility 

Not everyone with a debit card automatically qualifies. Banks usually pre-approve select customers based on factors like account activity, balance history, and past loan behaviour. You can check your eligibility via SMS, internet banking, or by contacting customer support. 

Step 2: Make a Purchase 

Choose a product from a retail partner or an e-commerce platform that offers the EMI on debit card option. At checkout, select ‘Debit Card EMI’ as the payment mode. 

Step 3: Choose Tenure 

You’ll get to pick a repayment period, typically ranging from 3 to 24 months. Some merchants may also offer no-cost EMI options, depending on the bank’s tie-up. 

Step 4: Authorise Transaction 

Enter your debit card details and authenticate the transaction using your registered mobile number and OTP. Once approved, the amount is debited from your account, and the EMI plan kicks in. 

Step 5: Monthly Instalments 

The EMI amount will be auto-debited from your bank account every month on a set date until the full amount is repaid. Some banks may also charge nominal processing fees or interest, depending on the terms. 

This facility brings flexibility to debit card users, letting them access credit-like features without actually using a credit card.

Debit Card EMI Eligibility

It is important to note that the debit card EMI facility is not available for everyone. It depends upon a number of factors, the most important of which is the bank’s decision. Based on certain criteria, your bank will decide whether or not you’re eligible for a debit card EMI on your purchase.

In the case of IndusInd Bank, you can check your eligibility by sending an SMS MYOFR to 5676757.

Good news is that even if you are not eligible now, the Bank can extend the facility to you in future, as the eligible customer base is updated every couple of months.

Important Things You should know about Debit Card EMIs

• You do not need to maintain a Fixed or Recurring Deposit to avail of this facility.
• Even this scheme, taken as a loan, can be foreclosed. However, there will be foreclosure charges involved.
• The minimum purchase amounts may differ from bank to bank.

Should You Opt for EMI on Debit Card?

Well, to help you determine that, let’s take a look at some of the benefits IndusInd Bank offers –

• No down-payment needed
• No money in your account is blocked
• You get 100% finance to buy the products or services of your choice.
• No lengthy documentation processes
• The loan is approved, and the money is disbursed instantly.

Another benefit offered by IndusInd Bank is that of no extra costs charged on the scheme. If you get to avail of this benefit in particular, such schemes are usually a great option to finance your big-ticket purchases. They help you buy what you want conveniently and without going beyond your means.

Moreover, our customers also get to enjoy the no-cost EMI option, allowing them to save a ton on interest. Plus, you can use your debit card to purchase products or services with a minimum cart value of Rs. 10,000 at both brick-and-mortar stores and online merchants via affordable repayment options.

Don’t have an account with us yet? Then, explore our range of personal accounts and choose the one that aligns with your saving requirements. Click here.

Conclusion

Debit Card EMI can be a useful way to manage large expenses without putting immediate pressure on your finances. It offers the convenience of spreading payments over a fixed tenure while avoiding the need for a credit card. However, before opting for a Debit Card EMI, it is important to understand the applicable interest rates, processing charges, tenure options, and repayment obligations. When used responsibly, Debit Card EMI can help you make essential purchases while maintaining better control over your monthly budget.

FAQs

Is Debit Card EMI interest-free?

Not always. Some Debit Card EMI offers may come with an interest charge, while others may be available as No-Cost EMI where the interest cost is effectively absorbed through discounts offered by the merchant or bank. The applicable charges depend on the specific offer and participating merchant.

Can we do No-Cost EMI on a debit card?

Yes, eligible customers can avail No-Cost EMI on a debit card at participating merchants. However, the availability of No-Cost EMI depends on the bank, merchant, purchase amount and the specific offer running at the time of purchase.

What is the golden rule of EMI?

The golden rule of EMI is that your total monthly loan and EMI payments should ideally not exceed 30% to 40% of your net monthly income. This helps ensure that you can comfortably manage repayments while maintaining sufficient funds for your regular expenses and savings.

Is EMI bad for your credit score?

No, taking an EMI is not bad for your credit score. In fact, making EMI payments on time can help build a positive credit history. However, missed or delayed payments may negatively impact your credit score and future borrowing eligibility.