An EMI Card comes with a pre-approved loan amount, this allows you to shop for that amount and make payments in Equated Monthly Instalments (EMIs). As the EMI Card is meant for non-cash transactions for consumer durables you will not be able to withdraw money from this card.
There are a number of advantages the EMI Card has over loans, a few have been listed below:
The EMI Card comes with pre-approved loan amounts, this means that you do not need to wait for loan approval to make purchases. This is helpful in situations where you need to buy something urgently and don’t have the funds for it on-hand. In such cases, instant personal loan apps can also be used.
EMI Cards offer flexible tenures to repay the loan amount. These tenures can range from 3 months to 24 months.
Some basic documentation for proof of address, proof of identity, and proof of age will need to be submitted. You can use the following documents for these.
You will also be required to show proof of income in the form of
6 months’ bank statements
3 months’ payslips
Many EMI Card vendors like ZestMoney have partnered with online e-commerce platforms like Amazon, Flipkart, MakeMyTrip, Yatra, Paytm, Samsung, Pepperfry, etc. to allow customers to shop for their favorite products online using their EMI Cards.
Most EMI Card providers do not require you to physically carry the EMI Card with you to shop for what you need. The EMI Card provider’s app should allow you to make the purchases you need.
Most EMI Card providers do not have any additional foreclosure charges. Foreclosure charges are levied on a borrower when they repay the loan before the end of the loan tenure.
There are two conditions an applicant needs to fulfill while applying for an EMI Card.
The applicant must be between the ages of 21-60 years.
The applicant must have a regular source of income.
Nowadays, many Non-Banking Financial Companies (NBFCs) have started offering new lines of credit to their customers, one of them being the EMI Card.