Nowadays, there is a boom in sale on e-commerce websites. Many products of your choice are being sold in the sale at low prices. But often you are left feeling sad due to lack of money in your account. But you would love to know that even if you do not have enough money in your account, you can shop with your debit card. Yes, most of the e-commerce sites offer debit card EMI facility on many products. That is, you can shop with your debit card and pay the price of the product in easy monthly installments.
It is a kind of loan. That is, whatever shopping you do with a debit card, the bank pays it on its behalf and later takes it as monthly installment by adding interest. HDFC Bank gives you instant loan of amount from 5 thousand to 5 lakh under this facility. Banks like State Bank of India, Axis Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Kotak Mahindra Bank are providing this facility. Not only this, SBI also provides EMI facility to selected customers even when they shop offline i.e. from stores.
Most of the e-commerce sites tie up with banks and offer EMI facility on shopping with debit cards. That is, you can buy from your debit card through the e-commerce site and convert it into EMI. In this, your money is not deducted from the account immediately, but every month money is deducted from your account in the form of EMI. The maximum number of purchases that can be made under the EMI facility from a card is based on the pre-approved limit of the customer, or the limit is fixed by the bank.
Check Eligibility: You can also check whether your card is eligible for this while shopping. You can check whether you will get EMI facility on any shopping by using your card number and registered mobile number. Apart from this, you can know whether your debit card is entitled to this facility or not by talking to the customer service of the bank or by SMS in the manner prescribed by the bank.
What is USP: The biggest feature of this facility is that it is not necessary that you have enough money in your account. Banks do not charge any processing fee for this facility. Interest is definitely charged on this. This interest is usually 13 to 16 percent per annum. But many products also have no cost EMI facility, that is, you do not have to pay any kind of interest. For this facility, you do not need to provide any documents, fill up any form or deposit any upfront amount.
What is No Cost EMI: If you are availing the facility of No Cost EMI, then interest is also not charged from you. In fact, in this facility, the bank charges the interest, the seller bears it and no interest is charged from you. So if you are shopping online, then consider whether the benefit of no cost facility is on the product or not. When you shop on an e-commerce site, you can see which options are being given by going to its payment details.
What to keep in mind: After shopping, you have to keep in mind that EMI is automatically deducted from your account on a specified date, then you have to keep in mind that on that date there is sufficient amount in your bank account, no So your account can be considered as default.
Make sure that you keep paying the EMI on time. Failure to do so may result in you having to pay a penalty. For example, HDFC levies a penalty of Rs 550 plus 18 per cent GST for missed EMI. SBI levies a penalty of Rs 500 plus GST. The EMI facility with a debit card usually carries 1-2 per cent more interest than a credit card.
