How Debit Card EMI Works (2024 Guide)

It is well-known that top credit cards in India offers EMIs on online transactions as well as on offline purchases. However, now banks started offering EMIs on debit cards also. Let’s have a look on How Debit Card EMI Works in this article and how you can avail it.

With the growth in the digital world, the payment methods after the purchase of goods have also evolved over the years. Nowadays people do not have to pay in cash. Instead, they pay via UPI Apps, debit cards or credit cards. Even some choose to convert purchases into installments on their credit cards. However, not all people may have a credit card. Such people may use the EMI on a debit card. The debit card EMI for payment can be found on big online shopping portals like Amazon & Flipkart. It allows Amazon & Flipkart shoppers to pay for the orders they make in an easy way by using monthly installments. 

Why Debit Card offers EMIs?

Having a debit card is like an individual carrying his or her savings or current account with him/herself. It is directly linked to an individual’s account and every purchase made by the individual debits the account straight away. In this manner, a debit card does not limit the user so much.

The quantity of money available to be spent in the bank account is the same amount that is available to be used up for purchase. With the rising number of people having debit cards, traders, as well as banks, have invented an option to convert high-cost purchases to an EMI on debit cards.

I hope you got an idea about, why banks are offering debit card EMIs? If you are planning to buy something on a debit card EMI then you can use our EMI Calculator to Calculate the EMI on a debit card for better management of repayment.

EMI on Debit Card Process

The EMI process is not such complex as one may think. Each bank has the given least amount of purchase to be carried out. Once an individual’s total purchase amount surpasses his or her defined amount, the individual has the choice to pay through the Debit Card EMIs.

Once an individual has chosen the EMI option, he or she needs to insert his or her details corresponding to those on the card, then afterward confirm them with a one-time password. After the confirmation with the one-time password, one’s purchase is made through an EMI. 

After the purchase is made through an EMI, he or she is given an offer based on a Pre-approved Limit indicating the loan amount that is approved, the interest rate, and the Down Payment. The offer is given needs to be accepted alongside providing consent for the loan instructions on loan EMI recovery from Debit cards linked to the savings account. The merchant charges expediency fee to the individual, who is the customer. Immediately the fee and the down payment is done by the customer, the purchase is fully accomplished. 

Interest Rates on Debit Card EMIs

When using the EMI on Debit Cards the customer should be informed about the idea that the bank charges interest for this facility. The interest rate on the EMI will differ from one bank to another. This means that each bank has its own interest rate. The interest also depends on one’s account balance as well as one’s relationship with the given bank.


  • Processing Fee: Rs. 199+GST
  • Tenure: 3 to 36 Months
  • Interest Rate: 16%


  • Processing Fee: Rs. 99+GST
  • Tenure: 3, 6, 9, or 12 Months
  • Interest Rate: 16%


  • Processing Fee: Rs. 2
  • Tenure: 6, 9, 12, 28 Months
  • Interest Rate: 14.70%

Kotak Bank

  • Processing Fee: From Rs. 99
  • Tenure: 3, 6, 9, or 12 Months
  • Interest Rate: 17.1%

Axis Bank

  • Processing Fee: 1% of the transaction amount or Rs. 100 (whichever is higher)
  • Tenure: 3, 6, 9, 12, 18, 24 Months
  • Interest Rate: For 3, 6 months: 14%, For 9, 12, 18, and 24 months: 16%

Debit Card EMI Approval Process

Most banks auto-approve customers when it comes to availing EMI on Debit cards. Individuals can always send messages on a certain given number. The number then checks whether one is eligible for EMI on the debit card or not. In case an individual is qualified for the Debit card EMI, it will display as a payment mode at the checkout page. For easier verification, one should use the same details like the ones with the bank.

The Debit Card EMI (Equated Monthly Installment) approval process in India may vary slightly among different banks and financial institutions. However, the general process typically involves the following steps:

1. Eligibility Check

Banks assess the customer’s eligibility based on factors such as credit history, transaction behavior, and other criteria.

2. Transaction Amount

The customer selects a product or service and chooses the option to convert the payment into EMIs using their debit card.

3. Terms and Conditions

    The customer reviews and agrees to the terms and conditions associated with the Debit Card EMI facility, including the applicable interest rates and tenure options.

    4. Authorization

    The customer provides consent for the conversion of the transaction into EMI at the time of making the purchase.

    5. Verification

    The bank verifies the customer’s eligibility and assesses the risk associated with offering EMI on the specific transaction.

    6. EMI Plan Selection

    The customer may have the option to choose the EMI plan based on the available tenure and associated interest rates.

    7. Confirmation

    Once approved, the customer receives confirmation of the EMI conversion, and the installment amount is communicated.

    8. Debit Card Hold

    Some banks may place a hold on the equivalent purchase amount on the customer’s debit card until the EMI tenure is complete.

    9. Monthly Deductions

    The EMI amount is deducted automatically from the customer’s linked bank account each month for the specified tenure.

    Note: It’s important to note that the specifics of the process may vary, and customers should refer to their respective bank’s terms and conditions or contact customer support for detailed information on the Debit Card EMI approval process.

    Debit Card EMI Features and Advantages

    The EMI on Debit cards has some exclusive features that greatly benefit customers. Such features include the following; there’s no need for documentation, there is no need for an individual to pay a security deposit, one only requires a one-click transaction to EMI, the instant approvals and disbursals cut the waiting and processing time hence saving the customer’s time, there is flexibility in repayment tenure. Lastly, there are easy re-payments from linked savings or an individual’s current account.

    The EMI on debit card provider takes around three to five days in order for it to get processed. After the processing is done, the EMI is charged on a monthly basis as per an individual’s payment instructions, or rather as per one’s card billing cycle.

    The no-cost EMI is also made available in a wide range of categories. Such categories include mobile phones, electric appliances like fridges, desktops, laptops, kitchen appliances among other products. The bank charges interest, which is provided as an upfront discount the time a customer purchases a good.

    Indian Banks Offering the EMIs on Debit Card

    In India, there are top four banks that offer EMI on debit card.  These banks include; the state bank of India, HDFC bank, the ICICI bank and the Axis bank. 

    1. The State Bank of India: the state bank of India started the EMI on debit card facility in the year of 2019. The Indian citizens who have debit cards get access to the facility without any processing fee and without any documentation. Afterward, they get an immediate disbursal. 
    2. HDFC Bank: HDFC is one of the most top-ranked banks in India. The bank provides EMI on debit card facility thereby giving the Indian citizens better experiences when it comes to shopping. The citizens are able to acquire a flexible repayment tenure. They are also advantaged to get instant approvals. 
    3. ICICI Bank: This banked started the debit card EMI facility in 2018. Customers enjoy the EMI on debit card facility under one condition that an individual should have a fixed deposit of Rs 10,000 in their savings account.
    4. Axis Bank: Axis bank is also one of the banks in India offering the EMI on debit card facilities. This facility enables Indian citizens to be in a position to convert their high-end purchases to monthly installments.  
    5. Kotak Bank: Kotak Bank’s Debit Card EMI offerings feature a processing fee starting from Rs. 99, making it accessible for users looking to convert eligible transactions into convenient monthly installments. With flexible tenures of 3, 6, 9, or 12 months and a competitive interest rate of 17.1%, Kotak Bank provides a transparent and adaptable EMI solution for its debit card users.


    Summarily, EMI on a debit card is buying any product of one’s choice as well as services on monthly installments using one’s debit card. The EMI is found in most debit cards and has proven to be perfect when it comes to purchasing products or services that are costly due to a number of reasons; there’s no need for documentation, there is no need for an individual to pay a security deposit, one only requires a one-click transaction to EMI, the instant approvals and disbursals. This was the whole guide about how debit card EMI works?

    Frequently Asked Questions (FAQs)

    How does the Debit Card EMI scheme work in India?

    Debit Card EMI facilitates the conversion of eligible transactions into manageable monthly installments, providing users with the flexibility to spread payments over time, enhancing affordability and convenience.

    What factors determine eligibility for Debit Card EMI facilities?

    Eligibility criteria encompass credit history, transaction patterns, and specific guidelines set by the issuing bank to evaluate and approve EMI requests.

    Are there any additional charges associated with Debit Card EMIs?

    Yes, opting for Debit Card EMIs may attract additional charges, including interest fees. The specific charges and terms vary among banks, and it’s crucial to review the terms and conditions before opting for the EMI facility.

    Can I convert any purchase into EMIs using my debit card, or are there restrictions?

    Not all transactions may be eligible for conversion into EMIs using a debit card. Banks often have specific criteria and restrictions regarding the types of purchases that qualify for the EMI facility.

    How do I check the status of my Debit Card EMI application and payments?

    To check the status of your Debit Card EMI application and monitor payments, you can conveniently inquire through the bank’s customer service helpline or use the online banking platforms, where transaction details and EMI status are typically available.

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