Purchasing items on EMI is the new trend. An EMI card comes loaded with a pre-approved amount which can be used to purchase online or at partnered outlets. It is as simple as a credit card, swipe the card and the items are yours.
However, there are some differences between EMI and Credit Cards. Let’s have a look.
What is EMI Finance Cards?
An EMI Card allows you to buy your favorite products on EMI, using a pre-approved loan. From the latest mobile phones and televisions to fashion and groceries, you can buy everything on EMIs. The loan amount offered by the EMI Card varies. A one-time submission of some basic documents is all you need to purchase your products on EMI.
How are EMI Cards different from Credit Cards?
Here are some of the ways in which the EMI card differs from a credit card:
No interest is charged on the EMI Card during debt settlement in case of a partnership. Only a one-time processing fee or handling fee is levied and no hidden costs apply. On the other hand, Interest charged on Credit card purchase is generally higher.
A loan from credit card blocks your credit limit, while an EMI card will be taken as another loan and it does not affect the creditworthiness of the buyer.
- Credit Period:
A credit card allows you a fixed credit period of 45 days. On the other hand, the credit period provided by EMI card varies and it can be as long as 24 months.
Considering all the above options, it is very feasible to make purchases using EMI Cards.
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