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To extend multiple shopping facilities to the customers, private lender IndusInd Bank has joined the league of ICICI Bank, HDFC Bank, Axis Bank and SBI ahead of the festive season. From October 20 IndusInd bank has extended EMI facility on debit card payments. An individual can now purchase or making any high value transaction and opt for an EMI facility tenure between three months and 24 months. Basically, it is a loan facility against the person’s savings account. Generally, consumer durables, mobile phones, fashion items and accessories are bought under this scheme.
The offer
A debit card holder of the bank can walk into any participating store and avail this facility by simply swiping card at PoS terminals.
IndusInd Bank has partnered with over 60,000 offline merchant outlets, including large format retailers, hypermarkets, multi-brand and stand-alone stores to facilitate purchases across all categories like consumer durables, electronics, apparels, automobiles etc.
The bank will soon be partnering with leading e-commerce platforms to enable online purchases as well. Debit card holders of the bank can avail this facility of buying products and then choose an EMI option with tenures from three, six, nine, 12, 18 and 24 months. Customers can even check their eligibility through SMS by typing MYOFR and sending it to 5676757.
Other banks
SBI is the first public sector bank to offer this facility. No pre-approved amount or documentation is needed to avail the loan. Neither is any processing fee needed. The benefit can be obtained for any transaction between Rs 8,000 and Rs 1 lakh.
To avail this EMI facility customers don’t have to pay any processing fee. Besides zero documentation and instant disbursal is there. It is not going to block any savings account balance of the customer.
Customers can select tenures of their choice from six months, nine months, 12 months and 18 months. Customers can check their eligibility by sending DCEMI to 567676 from the registered mobile number which is submitted in the bank.
For ICICI Bank, 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 one year. If you need more than one year to pay your bills, the interest rate will be 15% on reducing basis. A flexible EMI option ranging from three months to 24 months is available for ICICI Bank customers.
With HDFC Bank, you get flexible repayment tenure ranging from three months to 24 months. In addition, you get instant approvals and disbursal. You will get up to 100% of the total amount of the product with ‘0’ processing fees.
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.
HDFC Bank was the first bank to introduce this EMI facility on debit card in the country.
Axis Bank also provides EMI facility on debit cards. One can easily convert any high-end purchases into easy monthly installments 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.
According to RBI data, there are 6.3 crore credit cards and 91 crore debit cards in the country till May 2021.
Out of 91 crore debit cards, a maximum of 3% have EMI facility. According to a SBI study, by 2025 at least 55 percent of the debit cards may see EMI facility being made available on them.