Festival season has started in India. With the commencement of the festive season, banks are now promoting facilities on their debit cards to convert your bulk purchases into EMIs at offline and online stores.
Usually the Equated Monthly Installment is for a tenure of 3,6,12 or 18 months. For this you can for example for SBI Debit Card the effective interest rate for converting to EMI can be 14.70 percent per annum. In these plans, customers buy more than they can spend.
Remember, any form of EMI is a loan. There are various costs involved when applying and when you make a mistake.
what is EMI
EMI which is called Equated Monthly Installment or Equated Monthly Installment, the equated monthly installment which is paid on repayment of loan or buying the same is called EMI. At present, every person goes for loan. In the loan, you get the entire rupee in one go, whereas you do not need to pay the entire rupee in one go to repay it. The bank gives you the option of EMI for this under an easy process. Through which you can gradually pay off the loan taken from the bank every month. Let us tell you that in repayment of your loan through EMI you also have to pay interest of total Rs. This means that the interest of the loan you take from the bank will also be added to your EMI.