How Debit Card EMI Works

As a growing number of consumers seek ways to make their purchases as convenient as possible, E-commerce players have responded with debit card EMI. 

This service allows users to pay off their credit card bills by making monthly installments using a debit card.

In this articlr, we will explain how Debit Card EMIs work and how to apply for them.

What is Debit Card EMI?

Debit Card EMI is a facility offered by banks and other financial institutions that allows debit cardholders to pay for recurring expenses using their bank accounts. 

This allows consumers to divide the cost of a high-value purchase, such as electronics or furniture, into affordable chunks instead of paying the entire amount upfront.

A Debit Card EMI facility is similar to a credit card EMI facility, but you do not need to put up the full purchase amount as the bank does not block any amount for providing this facility. 

Banks generally offer Debit Card EMIs to their existing or old borrowers with good repayment histories. This facility is also offered to customers who maintain high average monthly balances in their bank account or perform high-value transactions. 

However, the eligibility of the facility and the banks' decision may depend upon several factors. 

How Does Debit Card EMI Work?

Customers can avail debit card EMI the following way. 

Over the selected tenure period, the bank will collect this amount from the customer along with any applicable interest. 

Customers can make down payments in the middle of the term and pay off their loans if they have extra money. Prepayments and foreclosure, however, might be subject to fees, depending on the bank's terms and conditions.

Who is Eligible For Debit Card EMI?

Not everyone is eligible for debit card EMI. Each bank has varying criteria the customer must meet before availing debit card EMI. 

You must ensure that you fulfill the criteria specified by your bank before submitting an application for Debit Card EMI. These requirements typically include keeping a certain transaction limit, a certain minimum balance in your bank account, and an excellent credit history.

You can check your eligibility by contacting your bank or choosing the option during product check out. 

Debit Card EMI vs Credit Card EMI

Credit cards are not for everyone. In order to be approved for a credit card, you must have sufficient income or credit score. 

As an alternative to a credit card, you can opt for an EMI on your debit card. Like with credit cards, it is also considered a loan and reported to the credit bureau. Debit card EMI is also another way to build your credit score.

The EMI is auto-debited every month as debit card EMI is directly linked to saving accounts. This minimizes the possibility of missing payments. 

Points to Remember


Debit Card EMI is a convenient, flexible payment option for individuals who want to manage their expenses and make large purchases more affordable. With this facility, debit cardholders can enjoy the benefits of EMI without the need for a credit card. It is best to check the interest rate and other terms and conditions before opting for Debit Card EMI.


Yes. EMI on debit cards is a type of loan that charges interest.

Not all customers are eligible for debit card EMI. Contact your bank to understand the eligibility criteria.

While both serve the same purpose, the benefits vary. Depending on your purchase and need, you can select the EMI that suits your needs.

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