How does an EMI on debit card work?

28 Mar 2023

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With the exponential growth and increase in online shopping and the number of products available, the modes of payment for these purchases have also evolved. It is no longer necessary to pay upfront in cash. One very popular option that people use is to convert purchases into installments on their credit card. This system has become one of the preferred ways to buy consumer durables. However, for those people who do not have credit cards or who do not have a high limit on credit cards, there is another option; EMI on a Debit Card.

A debit card is like carrying your savings or current account with you. It is directly linked to the account and every purchase made debits the account directly. This means a debit card does not have any limit as such. The amount available to be spent in the bank account is the amount available to be spent for purchase.

With an increasing number of debit card holders, merchants and banks have come up with an option to convert high value purchases into an EMI on the debit card . If you’re wondering how to get EMI on debit card, this is the guide for you.

How Does Debit Card EMI Work?

The EMI process is extremely simple. Each bank has a certain minimum amount of purchase that has to be made. Once the total purchase amount at a merchant exceeds this defined amount, the cardholder gets an option on merchant’s Platform to make payment through Debit Card EMI.

After you select your EMI option, you need to enter your card details and validate them with an OTP. After the OTP is entered, your purchase will be made through an EMI.

How to Pay EMI on a Debit Card?

The process works much like the credit card and is planned with the user's interest in mind. Each bank sets a minimum limit for availing EMIs, it could be anything from Rs.50000 and above, the cardholder can select this option on debit cards from the merchant platform.

  • The planning for EMI payment through a debit card must be decided pre-purchase.
  • Top merchants offer this option and buyers can find this option on the product information page.
  • Once you have decided, go to the checkout page and select the debit card with the EMI and payment option.
  • Select your tenure and rate of interest.
  • After additional authentication through a PIN and OTP verification, you can place the order.
  • The first deduction is made within 30 days.
  • Customers availing of this option should know that this is an auto-approved facility.
  • Along with interest, some banks charge processing and foreclosure fees. Ensure that you are aware of all the charges before availing of this option.

Who is Eligible for Debit Card EMI Offer?

Though debit card EMI payment seems convenient, not everyone meets the debit card EMI eligibility option. The most significant is approval from the bank. The bank considers various factors and then decides on eligibility.

Important Things You should know about Debit Card EMIs

If you are making debit card EMI payments, there are some important things you should know:

  • Having a recurring or fixed deposit with the bank is not necessary
  • This loan can be foreclosed, some banks do not charge for foreclosure
  • The minimum purchasing amount for availing of the EMI differs from bank to bank
  • This EMI requires complete repayment within 3-24 months subject to the transaction amount
  • No paperwork is required
  • Most e-commerce platforms offer this facility on select brands and products
  • The interest rate is high and ranges from 12%-16% p.a.
  • Buyers should opt for this option before purchasing; debit card EMI post-purchase is not convertible
  • Not all bank debit cards offer this option, buyers must check if their debit card offers this option

Advantages of Debit Card EMI over Credit Card EMI

  • Debit card EMI is convenient as not everyone owns a credit card. Also, credit scores may deter large purchases. The debit card enables buyers to repay through comfortable instalments
  • Debit card EMI payment works more like a loan and is reported to the credit bureau, giving lenders a huge opportunity to build their score
  • Debit card EMI is directly linked to saving accounts, it works on monthly auto debit, making payment defaults a next to nil possibility 

Then the customer is given an offer based on Pre-approved Limit showing the approved loan amount, Rate of Interest , down Payment by the customer and Tenure. This offer needs to be accepted along with giving consent for Standing instructions for loan EMI recovery from Debit card linked savings account. The merchant charges some convenience fee to the customer and once this convenience fee and down payment is made by the customer to the merchant, the purchase will be completed.

One important point to note about EMI on Debit Card is that the bank charges interest for this facility. The rate of interest on EMI will differ from bank to bank. It also depends on the balance in your account and your relationship with the bank.

If you’re wondering how to avail EMI on debit card, then you should know that banks auto approve customers for this facility. Flipkart customers can send a message on a number which checks if you are eligible for this feature or not. If you’re eligible for this feature, it will appear as a mode of payment at the checkout page. It is pertinent to note that you must use the same email ID and mobile number with the e-commerce portal as you do with the bank for them to verify and make that option available to you on checkout.

The interest on EMI is not the only charge associated with this account. Some Banks also charge a processing fee for this. Some banks may charge a foreclosure fee as well. This schedule of charges varies from Bank to bank. It is best to inquire with the bank about these charges before converting your purchases into EMIs.

All major e-commerce portals offer you the option to convert your purchases into EMI. But before you avail this facility, check if there is a no interest or low interest EMI option. If you’re ready to pay interest on these purchases, you can opt for this facility.


Individual aspirations are increasing and who does not wish for a better life than what they have? It is not a sin to enjoy the uber-luxe riches of the world if you can afford them. Credit cards are a great instrument that allows disciplined borrowers to fulfil aspirations with affordable EMIs, but let’s face it, not everyone is eligible for credit cards. Debit card EMI is a convenient option that allows you to pay from your savings. So, if your bank allows, do your research, and start planning on buying what you want through your debit cards.

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