Equated monthly installments or EMIs allow a wider pool of people to make purchases owing to the fact that payments are split across time frames that best work for them. There are a lot of products you might want to buy or urgently require such as a washing machine or fridge however you might have other expenses to account for which can eat into your spending capacity for that point in time. For those of you who feel you need to budget your expenses with additional care, EMI payments are a viable tool for making purchases. Read on to understand why an EMI card is superior to credit cards and debit cards below.
Why EMI Cards are Superior to Debit Cards
Debit cards allow cardholders to make purchases with EMIs however they require you to initially make a payment with your own funds. This means that your money is debited from your account when you make a transaction for a purchase.
When you choose to make an EMI payment out of this transaction, the spent money is credited back into your account thereby creating a loan.
This loan can be repaid with the aid of EMIs based on an agreed-upon interest rate.
It is important to understand that not all lenders require or need to withdraw money from your account. They may instead extend overdrafts to you.
EMI cards are superior to debit cards and their EMI offerings due to the following reasons.
- Offerings – You can purchase a wider range of products with an EMI card in comparison to debit cards as the latter doesn’t offer EMI financing with ease. The scope of EMI debit card payments is presently limited.
- Credit Limit – EMI cards entitle you to avail of a greater amount of credit. EMIs generated via debit cards are limited to what your bank balance is or are dependent upon an overdraft.
- Collateral – To acquire funds via a debit card, you are often required to provide collateral in the form of a fixed deposit as a result of which you are securing a personal loan.
- Interest – Owing to the fact that EMI financing via debit cards is not as popular interest applicable and charges on the same are likely to be more than those which would apply to an EMI card purchase.
Why EMI Cards are Superior to Credit Cards
Credit cards allow cardholders to make purchases with an advance of credit and require cardholders to make payments on the same with interest charges that are fairly high. EMI Cards are different from and superior to credit cards owing to the following reasons.
- Interest – EMI Cards such as the Bajaj Finserv EMI Network card allow for no-cost EMI purchases which imply no interest is charged. Instead, you pay for the product of your choice in installments as a result of which you don’t burn a hold in your pocket. In contrast, credit cards have high-interest rates applicable on purchases made via them. Credit card bills require you to pay a minimum due each month which is made up of the money owed along with interest.
- Eligibility – EMI cards are easier to avail and be eligible for provided you fall in the age group of 21 and 60 and have a regular income to show. Credit cards require you to have a regular income, a savings account, good credit history, and a good credit score in addition to being older than 18.
- Documentation – What makes EMI cards viable is the fact that they require minimum documentation pertaining to the application process. You are required to submit a copy of your Aadhar card, PAN card, a passport-size photograph, and a signed ECS mandate in addition to a canceled cheque. Credit cards on the flip side require each of the previously mentioned documents in addition to proof of age, proof of salary, and a number of bills and receipts to show your credit history.
The aforementioned reasons highlight why EMI cards are a superior bet to credit cards. Although you can buy on EMI without credit card.
Benefits/uses of an EMI Card from Finserv MARKETS
The benefits of Bajaj EMI card are ample as is established below.
- You can avail of a line of credit amounting to up to INR 4 Lakhs.
- You have a flexible term of repayment which may range from 3 to 24 months.
- You are only required to submit your documents once.
- You can shop for a number of products online with ease.
- You have access to over a million products to choose from.
- You aren’t required to pay any foreclosure charges.
Wrapping Up
If you too would like to avail of the benefits an EMI card provides, visit the Finserv MARKETS website to understand about the Bajaj card offers presently available. If you have already applied for a card or have one and have queries, visit the Bajaj customer portal.