Several Indian banks have recently introduced EMI (Equated Monthly Instalments) option on debit cards. It is an easy and affordable way to make big-ticket purchases without having to worry about the erosion of savings. However, only eligible cardholders can avail of this option. In this article, we have explained in detail how to check debit card EMI eligibility and how debit card EMI works.
A debit card EMI is a payment facility available on certain debit cards that allows you to convert your online or offline purchases into small, affordable EMIs. It is similar to a credit card but is considered an overdraft by the bank, and the bank makes the payment to the merchant on your behalf.
Once the payment is made, the bank cuts a certain amount from your account every month as EMI. The debit card EMI is calculated based on the amount you spend, your chosen tenure, and the interest rate the bank charges. Since it is an overdraft facility, the bank levies the applicable interest rate.
A debit card EMI is beneficial for people who do not qualify to get a credit card or who are not comfortable using a credit card. Moreover, it is also useful for people who do not want to erode their savings while making a big ticket purchase.
The following are the features and benefits of debit card EMI.
A debit card EMI is a convenient option to make purchases online and offline in affordable instalments using your debit card. When you make a purchase online, you will be presented with an option of debit card EMI at the time of checkout. You will have to choose that option to avail a debit card EMI. After the approval from the bank and the merchant, the amount will be credited to your bank account by the bank. You will have to repay this amount in small instalments during the tenure. The bank usually auto-debits your account every month until you repay your dues in full.
For offline purchases, you must tell the merchant to swipe the card in debit card EMI mode and punch in the desired tenure. The bank will sanction the transaction as per the balance in your savings account. The transaction is rejected if the limit in your savings account is less than the purchase you make. After the transaction is approved, you sign the charge slip agreeing to all the terms and conditions, and the money you spent for purchasing the product via debit card EMI mode will be credited to your account within three days. The bank then debits the EMI amount every month until you repay your dues.
The debit card EMI facility is available only with some banks and to only certain customers. Hence, checking the debit card EMI eligibility is important before purchasing. Usually, you can check the debit card EMI eligibility through the SMS banking facility. You are required to send an SMS from your registered mobile number to check whether your debit card has the EMI facility. The following are SMS codes to check the debit card EMI eligibility of top banks.
|‘MYHDFC’ to 5676712
|DCEMI to 567676
|DCEMI <space><last 4 digits of your debit card> to 5676766
|DCEMI <space><last 4 digits of your debit card> to 5676788
|DCEMI <last 4 digits of your debit card> to 56161600
|DC<space>EMI to 5676762 or give a missed call to 7812900900
|IDFC First Bank
|EASYBUY<space>< last 4 digits of your debit card> to 5676732
|Punjab National Bank
|DCEMI<space>< last 4 digits of your debit card> to 9264092640
|MYOFR to 5676757
Last updated: 18th Jan 2024
The following is the process of availing EMI on our debit card.
Banks charge certain fees to make the debit card EMI option available to you. It is important that you know all the charges associated with debit card EMI. The following are the different fees the bank charges, which vary across banks.
Before using the debit card EMI facility, it is important to keep in mind the following points.
The following table highlights the difference between debit card EMI and credit card EMI.
|Basis of Difference
|Debit Card EMI
|Credit Card EMI
|Sources of funds
|Credit limit on the card
|All credit card holders
|Selective debit card holders
|Can be converted into EMI post-purchase
|Have to opt for it before the purchase
|Long-tenure options available
|Limited tenure options when compared to a credit card
|Can impact the credit score
|May not impact the credit score
|Rewards and benefits
|Credit cards offer reward points on each transaction
|Limited rewards on debit cards when compared to credit cards
Debit card EMI is an excellent credit facility available to debit card users to make big-ticket purchases. It can help you repay your dues in affordable instalments without having to rely on credit cards. However, it is important to note that only eligible card holders can avail of this facility, and the banks charge fees and penalties upon late payment of your dues. Hence, it is important to use the debit card EMI facility with utmost caution, similar to a credit card EMI option.
Several banks allow users to convert their purchases on debit cards to EMI right at the time of making the purchase. You can check with your bank whether your card is eligible for debit card EMI facility.
The EMI is deducted on a monthly basis from your savings account starting 30 days from your purchase.
You can convert a purchase you make on your debit card into an affordable EMI by opting for the debit card EMI option at the time of making the purchase.
There are several banks that allow debit card EMI facilities. Some of them are HDFC Bank, SBI, Kotak Mahindra Bank, Axis Bank, and IndusInd Bank.
To activate your debit card EMI option, swipe your debit card at any pre-approved merchant using a card that has the debit card EMI facility. Before entering your PIN, select the debit card EMI option and confirm the transaction with your debit card PIN.
Yes, debit card EMIs are considered a good option as they help in making big-ticket purchases without having to worry about the erosion of savings.
You can check whether you are eligible for a debit card EMI facility at HDFC. You can send an SMS to 5676712 by typing ‘MYHDFC’. The bank will tell you whether you are eligible or not.
In case of no-cost EMI, you will not pay any interest or processing fee. However, in the case of debit card EMI, you will have to pay the charges and fees associated with it.
In case of non-repayment or late payment, you will have to pay a late payment fee charged by the bank. The charges vary across banks and are typically a fixed sum of money along with GST.