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Banks are now offering EMI facility to debit card holders too. But so far all commercial banks are not offering these facility. Not all customers of these banks are eligible for this facility. Currently two PSU banks, SBI and Bank of Baroda and private players such as HDFC, ICICI, Axis, Federal and Kotak Mahindra Bank are offering it.
SBI
State Bank of India launched the EMI facility on debit cards in October 2019. The cardholders can avail this facility with zero documentation, no processing fee, and instant disbursal.
SBI debit cardholders can avail of this facility up to Rs 4.50 lakh point of sales machines across India. The EMI generally varies between six months and 24 months. If you have an SBI debit card, you can check your eligibility by sending an SMS typing DCEMI 4 digit of the card number to 567676 from your registered mobile number.
HDFC Bank
With HDFC Bank, you get flexible repayment tenure ranging from 3 to 24 months. In addition, you get instant approvals and disbursals. You will get up to 100% of the total amount of the product with ‘0’ processing fees.
To check your EMI eligibility on HDFC debit card, send SMS “DCEMI last four digits of the card” to 56767 from your registered mobile number. To take an EMI facility HDFC debit card users can send a message – MYHDFC to 5676712. After sending the message, you will get the info about the loan amount, legitimacy, expire and merchant name where the offer can be availed.
ICICI Bank
ICICI Bank launched EMI on debit cards around two years ago. The only condition for getting this benefit is that you should have a fixed deposit of at least Rs 10,000 connected to their savings account.
The interest rates start at 13% for those who opt for tenure of up to 1 year. If you need more than 1 year to pay your bills, the interest rate will be 15% on reducing basis. A flexible EMI option ranging from 3 to 24 month is available for ICICI Bank customers.
To know debit card EMI eligibility, send SMS in the format DCEMI last four digit of the card and send it to 5676766.
Axis Bank
Axis Bank also provides an EMI facility on debit cards. One can easily convert any high-end purchases into easy monthly instalments at partner stores and point of sales. The interest rate is 14% per annum on a reducing basis.
The minimum amount that one must advance using this service is Rs 10,000. The maximum amount is up to Rs 1 lakh. One needs to pay a processing fee of 1% or Rs 150, whichever is higher. It will be a one-time charge.
To check your EMI eligibility, validity and loan amount on Axis Bank debit card, send SMS DCEMI XXXX (last 4 digits of your debit card number) to 5676782.
Bank of Baroda
Bank of Baroda also provides EMI facility on the debit card.
The offering will be a kind of instant approval of personal loan to the bank’s customers, at the time of purchase of product through 50 e-commerce or shopping portals or offline medium.
One can avail the EMI facility for a purchase up to Rs 50,000.
Federal Bank
Private lender Federal Bank also offers this facility to its customers. The tenure varies from 3 months to 12 months depending upon the amount and the need of the customer.
To avail this option, customers have to submit an application to the branch with valid declaration. It will take 2-3 days to activate the service. Generally, all the EMIs are no cost EMI, said the bank.
Kotak Mahindra Bank
Kotak Mahindra debit card offers you a loan up to Rs 15 lakh. The duration ranges from 6 months to 24 months. There is no down payment. This bank offers instant loan approval facility.
There is a processing fee that varies from Rs 99 to Rs 2,999 depending upon the amount of the loan. The minimum loan amount would be Rs 5,000. All debit cards of Kotak Mahindra Bank are loaded with EMI facility, says the bank’s website.
Card data
According to RBI data, there are 6.3 crore credit cards and 91 crore debit cards are in the country till May 2021.
Out of 91 crore debit cards, a maximum of 2% have EMI facility. According to a SBI study, by 2025 at least 55% of the debit cards may see EMI facility being made available on them.