EMI, or Easy Monthly Installments, is a popular payment option that has become increasingly popular in recent years. It allows customers to spread the cost of a purchase over a period of time, making it more affordable and manageable. Many retailers and financial institutions offer EMI options to customers, including EMIs on credit cards. In this article, we will take a deep dive into EMI, focusing on what it is, how it works, and what benefits it offers.
What is an EMI Card?
An EMI card is a type of credit card that allows customers to convert their purchases into monthly instalments. EMI cards are offered by many banks and financial institutions, and they offer a range of benefits to customers. The primary benefit of an EMI card is that it allows customers to make big-ticket purchases without having to pay the full amount upfront. Instead, they can spread the cost of the purchase over a period of time, which can range from a few months to a few years, depending on the product and the customer's creditworthiness.
One such popular EMI card is the Bajaj Finserv Insta EMI Card. The Insta EMI Card lets you purchase high-price commodities at No Cost EMI plans without the need of any down payment.
How Does an EMI Card Work?
EMI cards work by converting a purchase into monthly instalments. When a customer makes a purchase using an EMI card, the cost of the purchase is divided into equal instalments, and the customer is required to pay a fixed amount each month. The interest rate and the duration of the instalment period may vary depending on the product and the customer's creditworthiness.
For example, let's say a customer wants to buy a smartphone that costs Rs. 20,000. They can either pay the full amount upfront, or they can choose to pay for it using an EMI card. Let's say they opt for the EMI option and choose to pay for it over a period of 12 months. The bank will divide the cost of the smartphone into 12 equal instalments, which in this case is Rs. 1667 per month. The bank will also charge an interest rate on the EMI, which could range from 10% to 16% per annum. The interest rate and the duration of the EMI are determined by the bank and may vary depending on the product and the customer's creditworthiness.
What are the Benefits of Using an EMI Card?
There are many benefits of using an EMI card, including:
1. Affordable: EMI cards allow customers to make purchases that they may not be able to afford outright. By dividing the cost of the purchase into monthly instalments, customers can make big-ticket purchases without putting a strain on their finances.
2. Convenient: EMI cards are also convenient as they eliminate the need to apply for a loan or take out a personal loan. Customers can apply for an EMI card from their bank or financial institution. Once approved, they can use the card to make purchases and convert them into monthly instalments.
3. Flexible: EMI cards offer flexible repayment options, allowing customers to choose the duration of the instalment period and the amount of the monthly instalment. Customers can also choose to prepay the EMI if they have the funds available, which could help them save money on interest charges.
4. Interest Rate: The interest rates on EMI cards are lower than those on personal loans. This makes EMI cards an attractive option for customers who want to make big-ticket purchases but do not want to pay high-interest rates.
What is Make My Trip Pay Later?
Make My Trip Pay Later is a new payment option offered by MakeMyTrip, one of India's leading online travel companies. It allows customers to book their travel and accommodation without paying the full amount upfront. Instead, they can choose to pay for their bookings using EMI options, which allow them to spread the cost of their trips over a period of time.
Make My Trip Pay Later offers EMI options on flights, hotels and holiday packages. Customers can choose the duration of the EMI period, which could range from 3 months to 24 months, depending on the product and the customer's creditworthiness. The interest rates on the EMI options may vary depending on the product and the customer's creditworthiness.
What are the Benefits of Make My Trip Pay Later?
Make My Trip Pay Later offers many benefits to its customers, including:
1. Affordable: Make My Trip Pay Later allows customers to book their travel and accommodation without paying the full amount upfront. By choosing to pay using EMI options, they can spread the cost of their trips over a period of time, making it more affordable and manageable.
2. Convenient: Make My Trip Pay Later is also convenient as it eliminates the need to apply for a loan or take out a personal loan. Customers can simply choose the EMI option at the time of booking and make the payment over a period of time.
3. Flexible: Make My Trip Pay Later offers a range of flexible EMI options, allowing customers to choose the duration of the EMI period and the amount of the monthly instalment. Customers can also choose to prepay the EMI if they have the funds available.
4. Interest Rate: The interest rates on Make My Trip Pay Later are lower than those on personal loans, making it an attractive option for customers who want to book their travel and accommodation without paying high-interest rates.
Conclusion
In conclusion, EMI cards and Make My Trip Pay Later offer customers a range of benefits including affordability, convenience, flexibility and low-interest rates. By choosing these payment options, customers can make big-ticket purchases and book their travel and accommodation without putting a strain on their finances. It is important for customers to understand the terms and conditions of these payment options and choose the one that suits their needs and budget.