Debit Card EMI: Everything you should know

When you buy a phone online, the easiest way to make a pocket-friendly payment is to turn it into EMIs. While a credit card is conventionally used for such expenses, you can also get the phone on debit card EMI. In fact, for customers who do not have a good credit score, a debit card becomes a godsend. So, what is debit card EMI all about?     

What are the prerequisites for you to be eligible for debit card EMIs? 

These are the major requirements to be eligible for making EMI transactions with debit cards:

  • You should have an FD with the bank (or recurring deposit). 
  • The interest rate: 13% for one year, 15% for 18 and 24 months. 
  • Debit Card Limit would be 90% of your Recurring deposit’s principal value.
  • The amount to be converted into EMI will first be debited from your account. Then it will be reversed (this should usually take two working days). So, your account should have the appropriate balance to carry out the transaction. To bypass this stage, you need to have an overdraft facility. 
  • Note: The EMI tenure should not extend beyond the maturity of your FD.  

These are standard guidelines based on ICICI’s website; please do your research for specific terms and conditions. The interest rates are subjective and vary across the banks. Visit the bank’s website and carefully go through the scheme-related documents before making an EMI transaction. Know the required processing fee, Auto-Debit return fee, interest charges, LPC or Late Payment Charges, and Foreclosure Charges.  

Debit Card EMI: How do you do it?

Suppose you are eligible to make such payments and own a debit card from XYZ bank. You choose to buy a phone on debit card EMI. EMI-based payment can be made following these simple steps:  

  1. At the store, ask the merchant for the EMI option. 
  2. Select the preferred EMI cycle. 
  3. Link the saving/current account to the card.
  4. Authorize the transaction using your credentials like CVV, expiry date, and card number, etc.
  5. Enter the 3-Digit PIN or the OTP on your registered mobile number.  

EMI transactions can also be made on multiple e-commerce platforms like Flipkart and Amazon. Select banks offer this feature but making a payment there is more accessible. Follow these steps to convert an online transaction to EMIs: 

  1. Add the product to the cart and click on the payment option.
  2. Choose EMI as the mode of payment; look for XYZ bank debit card EMI in the options.
  3. Enter the relevant details like CVV, Expiry date, and card number wherever asked. 

Debit Card EMI over Credit Card EMI: Where does it win? 

Debit Card EMI requires little or no documentation. There is no need to have a good credit score, which is a constant worry for credit card users. The repayment is simpler and easier, and there is no need for security deposits or down payments. Also, HDFC claims that you will be charged relatively less than transacting using a Credit Card. There is no processing fee on the majority of the key e-commerce platforms like Amazon and Flipkart, making Debit Cards accessible. Debit Card approval takes minutes compared to Credit Cards, subject to credit scores and creditworthiness. Customers turned down by credit card issuers can count on debit cards to suit their needs. 

However, with all good things comes the biggest caveat; not everyone is eligible for Debit Card EMIs. Eligibility lies at the bank’s discretion, and eligibility is temporary. 

No cost EMI and Debit Cards:

If you wonder what no-cost EMI means, it is pretty much like its name. You pay nothing apart from the product value when opting for No Cost EMI. Currently, Debit Cards do not offer an option for no-cost EMI.     


Evaluate the benefits of your debit card by yourself, don’t be swayed away by temporary offers on some websites. EMI is a comfortable way to make easy and economical payments. With this evolution on going towards a more cashless future, you can buy a phone on debit card EMI. In addition, debit Card EMI can be pocket-friendly if you choose not to live beyond your means and stick to a budget.

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