EMI card is a pre-approved loan that you can avail against the purchase of any consumer durable and lifestyle product of your choosing. A Credit card is a financial instrument that helps you buy a burger, your favourite products or a leisure trip to Europe, by borrowing money from the bank.
Your loan on the EMI card is a single loan that you can avail up to the given limit, while it’s as good as taking a new loan every time you swipe your Credit card.
No interest is charged on the EMI Card during debt settlement. 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. Interest is levied when you don’t pay off your debt in full and you can’t escape the annual fees and late payment charges.
EMI cards are readily available without sole consideration of the customer’s Credit History whereas Banks have complex criteria and norms for granting a Credit Card. There are a set of Do’s and Don’ts that come along with the Credit Card payment option.
The approval of loans against the EMI Card is quick and physical documentation is almost negligible due to the latest eKYC option. Contrarily, approval of Loan process against a Credit Card is slow due to lengthy documentation and verifications.
The Merchant is not charged any fee for the use of an EMI Card but transaction fees are charged to the merchant every time you use your credit card.
With the EMI card, you are assigned an upper limit that prohibits you to shop beyond your repaying capacity. Unfortunately, with a Credit Card, you tend to unknowingly spend above your purchasing capacity.
Considering all the above comparisons, the EMI Card is definitely a better option for buying as compared to a Credit Card.
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