With the evolution of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital payments,
buying on EMI is no longer limited to credit cards. Many banks now allow customers to convert purchases into EMIs using
debit cards. While this is convenient, a
small mistake can lead to unexpected financial loss.
1️⃣ How Debit Card EMI Works
· When you shop online or in-store, select
“Debit Card EMI” at checkout.· The purchase amount is
split into monthly installments over a fixed tenure.· The bank
deducts EMI automatically from your linked bank account every month.
2️⃣ The Hidden Danger
· Many users
ignore processing fees, interest rates, or tenure charges while opting for debit card EMI.· Banks may
charge a higher interest rate on debit card EMIs compared to credit card EMIs.· Missing an EMI can result in
penalties and negative impact on your credit score.
3️⃣ Common Mistakes people Make
1.
Not reading the fine print about interest rates.2.
Choosing a longer tenure to reduce monthly payment, which increases total interest.3.
Overstretching monthly budget, leading to missed payments.
4️⃣ Smart Tips to Avoid Loss
· Always
calculate total cost (principal + interest + fees) before opting for debit card EMI.·
Stick to affordable EMIs that don’t strain your monthly budget.· Consider
prepayment options if available to reduce total interest.· Compare
debit card EMI vs. credit card EMI before finalizing.
✅ Bottom Line
Debit card EMI is a convenient way to buy products, but
mismanaging it can lead to a financial trap. Always read the terms carefully and plan your EMIs to avoid
unnecessary losses.
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.