Taking EMI is very easy if you have bought something new and are short on cash. While shopping online or in-store, it is important to ask for an Payment plan. Most banks provide an option of instant EMI on your card. As soon as you swipe the card, the EMI plan appears on the payment screen. You simply need to select the number of months for the Payment plan plan and then confirm your choice. If the budget is tight, taking EMI is better than cash. Sometimes you get EMI without any extra charge.
EMI activation method
Immediately after making a purchase, log into your bank’s app. There is a “Convert to Payment plan” button. You have to select the product price and month on the app or website. Each bank has its own procedure, but the steps are simple. EMI can also be activated over the phone, through the bank’s call center. Sometimes the bank itself sends an SMS for the Payment plan. This process is completed with OTP or PIN. You don’t need to fill out any form. The entire process is virtual and takes less time.
Does anything happen on EMI?
You can buy a mobile, laptop, fridge, AC, and TV on Payment plan. Travel tickets, shopping bills, and furniture also come under the Payment plan. Most of the items are converted into instant EMI with a credit card. The EMI option is also given on some debit cards. Online stores display the EMI tag below the product. A long-term Payment plan option is available for higher-value items. The Payment plan option is available only on items approved by the bank. Payment plan can also be canceled on returning the item.
What are the benefits of EMI?
The main advantage of Payment plan is a lower monthly load. You don’t pay the money all at once, so the budget stays safe. Financial planning is easier and less stressful. No interest with no-cost Payment plan option. Approval is achieved by card only, without paperwork. This process is done at home, through an app or a site. EMI alerts arrive on time on your phone. Taking Payment plan also improves your credit score if the payments are made on time. No need to borrow. Both purchases and budgets remain in balance.
What should be checked before taking EMI?
Whenever you think about an EMI plan, you should first understand some important things. It is important to check the card limit first.
- Monthly cash flow should be accurately estimated.
- You should read the item’s return policy first.
- Understanding the bank rate and plan will be very helpful.
- Processing fees and hidden charges should be eliminated.
- Choose after considering whether the Payment plan tenure is short or long.
- It is very important to keep SMS or app alerts enabled.
- Keep money as backup in case of emergency.
Don’t make these mistakes while taking EMI
Before converting any item to Payment plan , check the charges. Sometimes a processing fee is charged, which is additional. If you want to take the EMI plan, you should remember the due date. Even if the interest-free Payment plan is delayed, the cost may increase. Don’t deem the item as useless; you should have a plan for this. Do not exceed the card limit; otherwise, the new EMI plan may get rejected. You should save or email a screenshot of the app for future use. Sometimes the Payment plan is not canceled if the item is returned.
Which card is better for EMI?
SBI, HDFC, ICICI, Axis, and Kotak Bank cards are popular for Payment plan. They have different tenures and plan available. Some cards also offer a zero-interest option. Offers on these cards appear in pop-ups during online shopping. Debit card Payment plan is only available for a few banks and select customers. If Payment plan is not already enabled on your card, you can send a request to the bank. Payment plan can also be enabled through the app in the card settings. A monthly billing cycle must be followed. If you get reward points on your card, you don’t get them on Payment plan.
EMI and Budget Planning
It is very important to write down your monthly expenses before taking an Payment plan. Fix the Payment plan amount according to your salary. If you are already running multiple Payment plan, taking a new Payment plan can be risky. The longer the Payment plan tenure, the lower the monthly cost will be, but the total amount will be higher. Short-term Payment plan offers interest benefits, but the monthly burden is high. An emergency fund should be set aside so that no payment is missed. Your Payment plan should be reviewed every month. Sometimes money can be saved through a balance transfer or pre-closure.
Conclusion
In today’s digital age, converting large expenses into Payment plan(equated monthly installments) has become very easy. You can buy expensive electronics or household appliances like mobile phones, laptops, TV, and refrigerators in one go without spending a whole lot of money. With this facility, money is not spent all at once, so there is less financial pressure and stress on you.
Every bank, NBFC (Non-Banking Financial Company), and online shopping platform – like Amazon, Flipkart, Croma, or Reliance Digital – offers Payment plan option. Often, you can also activate an EMI plan through your debit or credit card. Nowadays, creating an Payment plan plan is just a matter of a few clicks. You can go to any app or website and instantly create a customized Payment plan for yourself – in which you can choose your repayment period and monthly amount.
But before taking EMI, there are a few things to keep in mind:
- Paying on time This is very important, otherwise you may be charged a penalty or your credit score may be affected.
- With every Payment plan Interest rates or processing fees It also happens, which needs to be understood and compared.
- After taking the Payment plan, you should keep your monthly budget in mind so that the repayments can be made easily.
If you use Payment plan wisely and responsibly, it is great. An effective and beneficial financial instrument It is possible. With proper planning you can get Payment plan. Financial freedom You can give it to me – where you can get what you need quickly and easily split the payment.