The finance sector has recently improved, providing customers various flexible payment options. One such innovation is the Debit Card EMI, which has gained popularity due to its convenience and accessibility. Unlike traditional credit cards, Debit Card EMI enables customers to purchase goods and services directly from their Debit Cards. It is an attractive option for users who do not qualify for a credit card.
Let us examine in detail how Debit Card EMI works and its significance.
Understanding Debit Card EMI
Debit Card EMI (equated monthly instalment) is a payment option that allows Debit Cardholders to pay for purchases in instalments instead of paying the total amount upfront. It can be a convenient way to pay for high-value items like electronics, furniture, or appliances, even if you do not have enough funds in your bank account.
How does Debit Card EMI work?
This section will explain how Debit Card EMI works. The process for applying for Debit Card EMI or Kotak EMI is similar to applying for a credit card and may include the following steps:
Check eligibility
You must check your eligibility before applying for a Debit Card EMI. Here is the eligibility criteria:
- Indian residents
- For consumer durables - 21-65 years & For digital products: 23-65 years
- One must be salaried, pensioner, or self-employed
- You must submit the Debit Card required documents.
Purchase with a partnered merchant
Purchase at a partner merchant store offering a Debit Card EMI facility. Kotak811 has partnered with more than 40,000 merchants, allowing users across India to purchase goods and services without burning a hole in their pockets. However, you must ensure the transaction amount is within the specified limit.
Also Read: How To See Virtual Debit Card In Kotak 811 Mobile Banking App?
Proceed to checkout
When you proceed to checkout, you will be given an option to avail of the EMI facility. You can choose an EMI tenure from 6 months to 24 months. Choose the EMI that best suits your needs and pay conveniently over time.
Confirmation
Once you have decided on an EMI tenure, the bank will send you the scheme's terms and conditions, including the interest rate, processing fee, and other costs. Please carefully consider these facts before approving and authorising the EMI conversion.
EMI deduction
The bank will confirm the Debit Card EMI request and start deducting money from your bank account monthly. Ensure you maintain a sufficient balance to avoid fines and penalty charges.
Also Read: How To Increase Debit Card Limit?
Debit Card EMI application process
After understanding how EMI works on Debit Cards, you must understand the application process. Kotak811 offers two EMI methods: in-store and Debit Card.
In-store
- Walk-in to the partnered store to purchase the product
- Select the product you wish to purchase
- Enquire about SMART EMI or Debit Card EMI options and get all the details
- Submit the documents
- Complete the application
- Make the down payment and take the product.
Debit Card
- SMS DCEMI<space><Last 4 digits of Kotak811 Debit Card Number> to 5676788 to know your pre-approved limit.
- Visit the nearest partner merchant to purchase the product
- Select the desired product
- Enquire about the Kotak811 Debit Card EMI option and swipe your Debit Card
- Select the EMI tenure (6-24 months)
- Enter the Debit Card PIN
- Complete the transaction and take the product.
Benefits of using Debit Card EMI
These are the benefits of Debit Card EMI options:
- Accessibility: Accessible to a broader audience, including those without a credit history, such as young adults or individuals new to credit systems.
- Instant approval: Enables immediate conversion of purchases into EMIs at the point of sale or online checkout, providing a seamless shopping experience.
- Ease of budget management: Allows consumers to break down large purchases into manageable monthly instalments, making it easier to budget for big-ticket items.
- No additional documentation: This process typically requires no extra paperwork, as it uses existing information linked to the consumer's savings account, simplifying the procedure.
- Wide acceptance: Available at numerous leading retailers, both online and offline, covering a variety of products and services, from electronics to travel.
- Interest free options: Often includes interest-free EMI plans for a specified tenure, allowing consumers to pay in instalments without additional interest costs.
- No Need for a credit card: This option provides a viable alternative for individuals who do not have or prefer not to use a credit card. It enables the debit card to be linked to their savings account.
- Increased purchasing power: Enables consumers to afford high-value items that might be challenging to pay upfront, enhancing purchasing flexibility.
Also, Debit Card EMIs encourage financial discipline through automatic monthly deductions and provide a convenient alternative for those who may or may not want to use a credit card. Increased purchasing power and improving one’s credit score are essential benefits that make this payment method so popular.
Kotak 811 also offers its users an 811 Debit Card and Image Debit Card, which are tailored to meet their needs.
FAQs
1. What is Debit Card EMI?
Debit Card EMI (Equated Monthly Installment) is a financial service that allows consumers to convert their high-value purchases made using a Debit Card into smaller, manageable monthly instalments. Traditionally, the EMI option was only available to credit cardholders, but the introduction of Debit Card EMI has expanded this convenience to those who prefer or only have access to Debit Cards linked to their savings accounts.
2. How does Debit Card EMI work?
This is how Debit Card EMI works:
- Check if the merchant offers Debit Card EMI
- Select the EMI option
- Choose a repayment term
- Enter your card details
- Authorise the transaction
- The EMI amount is deducted automatically
3. How can I access the Debit Card EMI facility?
Here is how you can access the Debit Card EMI facility:
- Check Eligibility
- Select the product
- Proceed to checkout
- Choose EMI
- Select your tenure
- Authorise the transaction
- Authenticate the transaction
4. Can Debit Card EMI affect my credit score?
While Debit Card EMI is not the same as conventional borrowing, certain transactions may nonetheless influence the individual's credit score. Late or missing payments may have a negative influence on the customer's creditworthiness, limiting future borrowing opportunities.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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