Now you can buy from your debit cards and convert the purchases into monthly EMIs?

It is no less than the fact that consumerism is growing by leaps and bounds. The goods which were not considered as necessities have no become the bare minimum necessities like washing machine, refrigerator, vehicle etcetera. It has almost become difficult for most people to live life without these basic things. However, not everyone is privileged enough to purchase all these goods using their own pockets. Here, comes the role of financing, it helps one to fund the requirement for all things. One of such financing options is debit cards. It also helps an individual to convert the purchases into monthly EMIs, thus reduces the burden of making payments in one go. In the article, we will deep dive into nuances of turning the purchase into monthly EMIs.

Earlier the conversion of the purchases into monthly EMIs provided by credit cards only. However, not every person can manage to own a credit card which takes into count the credit history, employment tenure, salary and various other factors. So, to assist the individuals in making their payments banks and financial institutes offered the facility of converting the purchases into monthly EMIs in case of debit cards. The facility aims at bridging the financing gap by facilitating the convenience of credit and Debit Card EMI users.

Equated Monthy INstallments Conversion Procedure:

Converting the EMI is a straightforward and smooth process as elaborated in the following steps.

• The cardholder is required to call the Mercantile where he wants to avail the offer from and pick a product.
• Then he needs to notify the store executive to swipe his debit card transaction in the EMI exchange mode rather than of the usual Purchase mode and punch on a preferred tenure.
• The transaction will be sanctioned on cardholders active debit card according to g to the current balance in the savings account. The deal will not be sanctioned if the sum is more than the available limit.
• If the cardholder agrees to all the terms and conditions, he is required to sign the charge slip.
• The Swiped purchased transacted money will be deposited back to the user on T+3, and a temporary instalment account will be generated as per your selected Equated monthly term.

Difference between the Debit card Vs credit cards EMIs

1. In the case of debit card EMI, the amount is first debited from an individual bank account. After some days, the amount is credited back to your bank account and the transaction is converted into a loan. so, individual cannot use the debit card to make a purchase on EMI if their bank account does not have enough funds for the purchase. However, in case of credit cards, an individual credit card is initially charged the total amount, and the purchase amount is then converted into an EMI some days. But, one will not face any issue with a credit card so long as his credit limit is not breached.

B. No interest on EMI schemes may not be as prevalent in the debit card as in case of credit cards EMIs. 

Should debit Cardholders Opt for Such Schemes?

The answer is relatively straightforward. If the cardholder is getting the debit card EMI benefit at without any cost, then such schemes are quite good. However, if there is a cost involved in taking debit cards EMI payments, then cardholder have to check if the extra interest paid is worth it or he can afford to delay the purchase.

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Debit cards

A debit card is a plastic payment card that acts as an alternative for the cash when making purchases. It is similar to a credit card, but unlike a credit card, the money is immediately transferred directly from the cardholder’s bank account when making any. Purchase or payments.

 Need for converting the purchases into monthly EMIs in debit cards?

1. Consumerism has taken roots in our life and thing which were not all-important earlier qualifies as minimum necessities.
2. Not every person can manage to own a credit card which takes into count various factors. So, to assist the people in making their payments, financial institutes offered this facility. 

EMI Conversion Procedure:

• one is required to call the Mercantile where he wants to avail the offer from and pick a product.
• Then he needs to notify the store executive to swipe his debit card transaction in the EMI exchange 
• The transaction will be sanctioned on cardholders active debit card according to g to the current balance in the savings account. 
• The Swiped purchased transacted money will be deposited back to the user on T+3, and a temporary instalment account will be generated as per your selected Equated monthly term.

Should one opt for debit cards EMIs

 if there is an interest charged on EMIs, then one should opt whereas if interest is charged, one must weigh in the benefits and cost.