EMI cards have changed the way we shop, as they’ve created a simpler and budget-friendly way to buy expensive products. If you want to buy a smartphone, some home appliances, or are going to the hospital, an EMI card will take the weight off with easy installment payments. Let’s take a look at what an EMI card is, its features and benefits, and how to get one.
What is an EMI card?
An EMI (Equated Monthly Installment) card is a pre-approved credit tool for you to make purchases and pay for them in simple EMIs without having a credit card. Issued by financial institutions like Bajaj Finserv, etc., the card operates like a credit card but is specifically designed for EMI-related purchases.
How EMI Cards Work for Shopping & Loans
At a retailer, you can quickly convert the overall value of your purchase, made using your EMI card, into monthly installments. Repayment is made over your chosen tenure, usually between 3 to 24 months or longer. Sometimes, the EMI is a No-Cost EMI, which is more affordable than paying for the item in total.
Key Features of an EMI Card
Instant Loan Approval for Purchases
When using an EMI card, the approval occurs instantly at the store, allowing you to avoid lengthy loan approvals and get a seamless experience.
No-Cost EMI & Low-Interest EMI Options
Depending on the offers and the merchandise, EMI cards allow you to avail of No-Cost EMIs, which means that your installment only includes the product price, or Low-Interest EMIs, which are much cheaper than personal loans.
Borrowing Limit & Flexible Loan Tenure
Most EMI cards come pre-approved with a range of loan limits that typically range from ₹10,000 to ₹2 lakhs and sometimes higher. Borrowers can choose the loan tenure according to their repayment ability, typically from 3 – 24 months.
Wide Acceptance & Availability at Partner Stores
Don’t be limited to stores that only accept cash or credit cards. From Amazon, Flipkart, and big-box electronic stores like Croma and Reliance Digital, these EMI cards are accepted at a wide range of stores, both offline and online.
Benefits of Using an EMI Card
An EMI card is more than just a way to access cash. It’s also an easy, flexible, and often interest-free way to pay for expensive goods without going over your budget. An EMI card is an excellent method to keep track of your money each month while still being able to plan for significant expenditures. It’s especially useful for individuals who desire easy, flexible, and affordable ways to get money.
Here are some of the benefits:
Helps you buy goods that cost a lot of money
An EMI card is the best method to buy something expensive, such as a smartphone, TV, appliance, or piece of furniture. Instead of paying the full amount, the price is split into reasonable monthly instalments. This brings luxurious products within everyone’s reach.
You don’t need a credit card
You don’t need a credit card or a strong credit score to utilise an EMI card. It provides the same “buy now, pay later” option, which is great for young professionals, stay-at-home parents, or anyone who are new to credit.
Choices with no down payment
You may receive the things you want with several EMI card programs without having to pay anything up front. This is great for individuals who want to be able to change their minds without losing their money.
Options with no or low interest
Many EMI cards let you buy things without paying interest, especially from partner brands and stores. Even if you have to pay interest, it’s generally less than what personal loans or credit card EMIs provide you.
Terms for paying back are flexible
Choose a repayment time that works with your monthly budget. It normally lasts from three to twenty-four months. This gives you the freedom to service EMIs without changing your other financial obligations.
Plans with lower monthly payments
Many EMI cards let you pay less each month, especially around the holidays or when you purchase at partner retailers. This lets you buy huge goods without worrying about how much money you have to spend every month.
No fees for foreclosure
Unlike personal loans, most EMI cards don’t charge foreclosure costs if you pay off the balance of your EMIs early. This encourages people to pay back money on time and have financial independence.
Not many documents and quick approvals
Getting an EMI card is straightforward; all you normally need to do is present proof of income and some basic KYC information. In many cases, the card is approved immediately and may be used online.
Common acceptance, online and in shops
Several partner companies, such as big online platforms like Amazon, Flipkart, and Croma, accept EMI cards. This makes it easy to shop across diverse categories and channels.
Special offers, sales, and cash back
Banks and NBFCs regularly offer EMI cardholders perks ,including cashbacks, short-term discounts, and no processing fees. You may save even more by combining these offers with brand discounts that are already going on.
How to Apply for an EMI Card?
Eligibility Criteria for EMI Card
- Age: 21 to 60 years
- Stable monthly income
- Indian residency
- Valid KYC documents
Documents Required for EMI Card Application
When you apply for an EMI card, lenders usually want to see basic KYC and banking paperwork. The procedure is primarily computerised and easy, but having the right papers available will help you get a faster approval. You only need most of these documents once, when you apply or during onboarding. Digital onboarding has made things even easier by letting you do a lot of these processes through mobile applications or internet portals.
This is a list of the documents you usually need:
PAN Card
A PAN Card is used to prove who you are and when you were born. It also helps the lender look at your financial history and connect your application to your credit history, if you have one.
Aadhaar Card
This is needed for Know Your Customer (KYC) checks. It checks your name, date of birth, and residence, and it also lets you connect your EMI card to government-approved identification documents.
Proof of Address
You need to provide lenders proof of where you live now. Your Aadhaar card, utility bills, passport, voter ID, or rental agreement might all be examples of this. Address verification ensures that communication is clear and stops fraud.
Bank Account Information
You need to give your bank account number and IFSC code. This is necessary for setting up e-mandates, which take your EMI payments out of your account every month.
A Signed ECS (Electronic Clearing Service) Mandate
This is an official document that lets your bank automatically take the EMI amount out of your account. It makes sure that payments are made on time and that EMIs are not missed. Some lenders still need a physically signed mandate for this stage, even though it is commonly done online.
Cancelled Cheque
Some lenders ask for a cancelled check to verify your account, especially when you set up ECS or eNACH requirements. This is not required, but it is helpful. It gives additional confirmation that you possess the account.
Proof of income (optional)
Most EMI cards are pre-approved depending on how you use your account; however, certain issuers may ask for proof of income, such as pay stubs, bank statements, or an ITR if you aren’t pre-approved or want a greater credit limit.
Online vs Offline EMI Card Application Process
How to Get an EMI Card Online
Great for those who are proficient with technology and want to get things done quickly, in a paperless manner.
Here are a few steps:
- Visit the official website or mobile app of the EMI card issuer (for example, Bajaj Finserv, HDFC, Axis, etc.).
- To apply, click “Apply Now” or “Get EMI Card.”
- Your name, PAN, Aadhaar, mobile phone number, and email address should all be added as per the form.
- You may upload scanned copies or photographs of vital documents, including your PAN card, Aadhaar card, and bank details.
- If you need to, do a complete video KYC.
- To set up auto-debit, read and agree to the terms of the e-mandate.
- Pay the one-time card fee if you have to.
You may get your digital EMI card right away by email or an app.
How to Get an EMI Card in Person
This is excellent for customers who want support in person or who are applying for something while they are buying it.
- Visit a partner store, brand outlet, or bank location that offers EMI card services.
- Choose what you want and tell them you want to pay with an EMI card.
- The store employee will help you fill out the EMI card application.
- Send in paper copies of the required documents, such as your PAN, Aadhaar, proof of address, and bank details.
- Sign and fill out the ECS mandate or eNACH permission form.
- If you have to, offer them a cheque that has been cancelled.
- You may use your EMI card to buy things immediately when it is approved.
The EMI card usually comes in the mail to the address you gave when you signed up.
EMI Card vs Credit Card – Which One is Better?
It’s helpful to have an EMI card so you can make small monthly payments on significant purchases over time. But like most things, it has both good and bad points. Let us take a closer look:
Pros
Instant EMI Conversion:
With EMI cards, you can turn your purchases into monthly payments right away, both online and offline, without having to apply for a separate loan.
Low or no interest rates:
Many EMI cards provide no-cost EMIs, especially during holiday sales or when they partner with a company. Even with interest, it’s frequently less than a credit card EMI or a personal loan.
You don’t need a credit score:
People who have never had credit before can use most EMI cards. You don’t need a high credit score or a long history of managing money well to qualify.
Not a lot of paperwork:
To apply for and get authorised for an EMI card, you only need basic KYC papers like your PAN, Aadhaar, and bank data. This makes it quicker and faster than getting a regular loan.
Payback periods that can be changed:
You may pick a repayment time of 3 to 24 months, depending on how much you bought and how much money you have.
No fees for foreclosure:
Most EMI cards let you pay off your plan early without any costs, which gives you more ways to pay.
Works at a lot of partner retailers:
More than 1.5 lakh partner merchants accept EMI cards. This includes significant online stores like Flipkart, Amazon, Croma, and Reliance Digital.
Clear EMI split:
Before you confirm the transaction, you may see the EMI amount, any interest, and the term of the loan. This makes everything extremely clear.
Helps you pay back loans on time:
If you report your monthly EMI card payments to credit bureaus, they can help you build or improve your credit profile over time.
Price of a one-time issue:
Unlike credit cards, which charge yearly fees, EMI cards normally only charge a one-time fee. In the long run, this makes them less expensive.
Drawbacks of Using an EMI Card
Limited merchant network:
You may use EMI cards in stores that work with them. On the other hand, you may use credit cards at any store that has a POS system.
No Extra Benefits:
Unlike credit cards, EMI cards don’t provide you with cash back, reward points, travel perks, or discounts unless you sign up for a special program.
The restrictions that have been set may not be high enough:
The credit limit you acquire might not be enough for big purchases, and getting a larger limit sometimes requires having to show your income or have your credit score examined again.
You have to set up auto-debit:
Most EMI cards need you to set up an ECS/eNACH auto-debit mandate. You could have to pay a fee if your account doesn’t have enough money on the due date.
Fees for Paying Late:
If you miss an EMI, you could have to pay late fees and penalties. These could harm your credit history if they are recorded.
No credit line that may be utilised again:
Unlike credit cards, EMI cards don’t let you borrow money over and over again or make partial payments. You have to pay the whole amount of your EMI, which is fixed.
Limits based on the product:
Not all of the things on a store’s website can be paid for with EMI cards. There may be restrictions depending on the type of goods or how much they cost.
Fees for processing certain transactions:
Even if a lot of deals are free, certain purchases may have processing fees or GST on interest, which makes the EMI cost more.
Not the best for costs that come up out of the blue:
You should use EMI cards for planned expenditures, not for items that come up abruptly, like medical expenses or vacation bookings. In those cases, credit cards or personal loans may be better.
Some applications don’t work with it or don’t have all the features:
Some EMI cards don’t have mobile apps that let you track your payments in real time or have a lot of other functions. This might make it harder to keep track of your payments.
Where Can You Use an EMI Card or a Credit Card?
When to Choose an EMI Card
If you want to keep things simple, have no fees, and get your application approved quickly without having to provide your credit history, an EMI card is the perfect choice for scheduled purchases. This is when it makes the most sense:
1. You don’t have a credit card or a credit score
An EMI card is easier to get if you don’t have a lot of credit history or are new to credit. It only needs simple paperwork and doesn’t look at your CIBIL score to decide if you can get it.
2. You want EMI conversions that happen right away and without any trouble
EMI cards provide you with quick EMI at checkout, both online and in-store. This is different from credit cards, which may need post-purchase EMI conversion or additional applications.
3. You’re looking for EMI deals with no fees
During brand promotions or seasonal specials, EMI cards are often linked to zero-interest or low-interest deals. This is great for clever consumers who want to save on interest.
4. You like to spend money on things you can afford with fixed terms
Your monthly EMI and duration are spelled out on EMI cards, which helps you budget better and stay away from the lure of revolving credit.
5. You’re buying something expensive from a partner store
An EMI card can make buying a phone, laptop, TV, or AC from Croma, Vijay Sales, or Reliance Digital easier by giving you access to exclusive in-store deals.
6. You don’t want any foreclosure fees
Most EMI cards let you pay off your loan early without any fees. This isn’t always the case with credit card EMIs or personal loans.
When to Choose a Credit Card
Credit cards are more flexible, give incentives, and are accepted by more places. When they are the superior choice:
1. You want more people to accept you
Credit cards may be used almost anywhere, including online shopping, travel reservations, restaurants, and overseas merchants. EMI cards, on the other hand, can only be used at partner stores.
2. You want bonuses, cash back, and other benefits
Credit cards provide you with loyalty points, cash back, discounts, access to lounges, exemptions from fuel surcharges, and more. Most EMI cards don’t have these extra features.
3. You need to be able to get revolving credit
With a credit card, you can spend money now and pay it back later, and you can even carry some of the balance forward (with interest). You can’t change the amount you pay back each month using EMI cards.
4. You need money right away in case of an emergency
Credit cards give you fast, unlimited buying power in situations like medical bills, vacations, or hotel reservations. EMI cards may not work.
5. You want to raise or improve your credit score
Using a credit card regularly and paying it off on time will help your CIBIL score. Some EMI cards do report to credit bureaus, but most don’t add anything to your credit record.
6. You go on trips abroad or send money to other countries
You may use credit cards anywhere in the world, and they typically come with travel insurance or currency perks. EMI cards are only available in India and only work with certain businesses.
EMI Card vs Credit Card: A Quick Comparison
| Feature | EMI Card | Credit Card |
| Purpose | EMI-specific purchases at partner stores | General-purpose spending (online & offline) |
| Interest | No-cost or low-interest EMIs | Higher interest on EMIs (12–24% p.a.) |
| Approval | Pre-approved, minimal KYC | Based on credit history and income verification |
| Usage | Limited to tied-up merchants and platforms | Accepted globally and across all merchants |
| Rewards & Perks | No rewards or cashback | Offers cashback, points, and travel perks |
| Fees | Usually a low or one-time fee | May have high annual/joining fees |
| Foreclosure Charges | Typically nil | May include prepayment or foreclosure fees |
| Credit Score Impact | May or may not affect CIBIL | Regularly reported—builds or affects credit score |
FAQs on EMI Cards
Can I Get an EMI Card Without a Credit Score?
Yes. Many issuers offer EMI cards based on income proof and KYC documents, even if you don’t have a credit history.
What Happens If I Miss an EMI Card Payment?
Missing payments can affect your credit score and lead to late payment charges. Timely payments are crucial.
How to Increase the Loan Limit on an EMI Card?
You can request an increase in the limit by providing updated income documents or maintaining a good repayment record.
Are There Any Hidden Charges on EMI Cards?
Generally, no hidden charges are applied. However, always read the terms and conditions for processing fees or foreclosure charges, if any.
Conclusion
EMI cards are a smart and convenient financial tool for managing large purchases without straining your budget. With easy eligibility, flexible repayment tenures, and wide merchant acceptance, they’re a great alternative to credit cards for EMI-based transactions. If you’re looking to simplify your finances, an EMI card might be just what you need.
