Since the concept of EMI Cards and Credit cards came into existence, the purchasing power of individuals has definitely increased. However, instead of going all in at once, people prefer to pay in instalments as it comes light on their pocket.
However, if each and every factor is considered, an EMI card in India is a much better investment than a credit card. This is because the flexibility that it has to offer is just unmatchable.
What are the differences between an EMI card and a Credit Card?
These cards are two separate financial instruments with their own features and benefits.
An EMI card allows you to make purchases and pay for them in fixed monthly instalments over a set tenure, usually 3 to 24 months. However, on the other hand, a credit card allows you to make purchases and pay for them in full by the due date. In addition, one can also pay a minimum amount and carry forward the remaining balance to the next billing cycle.
EMI cards are generally easier to obtain than Credit Cards, as they do not require a high credit score or credit history. Moreover, the Bajaj EMI card offered by Bajaj Finserv is available to individuals even without a credit score. Credit cards by almost all companies, on the other hand, are usually only available to individuals with a good credit score and credit history.
Rate of Interest
EMI cards usually have lower interest rates compared to Credit Cards, which often have a high rate of interest. Therefore, the prime factor considered while availing such cards is the interest rate.
Limitations for usage
EMI cards are available from specific lenders only and are tied to certain categories of products, such as home appliances or electronics. However, a Credit Card can be used for various purchases. This includes online and offline transactions, travel, dining etc.
When it comes to rewards, which everyone often looks for, an EMI card is quite beneficial. It offers many rewards and benefits. Moreover, it has quite a good amount of limit for a pre-approved loan.
Which is the better option for you?
While choosing between the two, take into consideration your financial situation, spending habits, and the type of purchases you plan. In my personal opinion, I was also confused between the two but ultimately ended up purchasing the Bajaj EMI card. This is because it offers interest-free credit up to Rs 2 lakh, which is enough to make many purchases.
It comes with a loan amount of Rs 2 lakh.
You must submit documents on your first purchase at any of its partner stores to apply for the EMI card in India. Another effortless method is to apply online by going to their official website.
Flexible Repayment Term
Repayment for the amount spent by this card can be made within a flexible tenure. This generally varies from 3 months to two years.
After purchasing this card, one can use it via the Bajaj Finserv Wallet App without the need to carry it. So there is no need to take it in your wallet everywhere.