Have you been considering getting an EMI Card for your varied financial needs? Need to know how it differs from a Credit Card and why people in 2020 are preferring it? This article will take you through the 5 top advantages of an EMI Card while highlighting its pros against a credit card.
Here are the top advantages of an EMI Card:
EMI Card is a Pre-Loaded Money Card
When you register and get an EMI Card (say from Indiabulls Dhani), you are essentially getting a pre-loaded loan. The amount that you borrow is pre-loaded into the card for use across any merchant. You can use an EMI card to buy an air conditioner from Reliance Digital or a paperback book from Amazon.com. Each purchase is recorded against the loan amount that you initially borrowed.
On the other hand, a credit card works slightly differently. Every purchase is registered as a separate borrowing. The difference is in the processing fee, which is very higher for credit cards.
No Hidden Costs in an EMI Card
One of the greatest advantages of an EMI Card is that there are no hidden costs. You pay a nominal processing fee to avail the line of credit and that’s it. There are no extra handling rates that are charged.
This is also the reason why most credit card users are transitioning to EMI cards. This transparency is appreciated.
Higher Costs on Credit Cards
An auxiliary point of the above advantage: availing an EMI card and managing it is an affordable venture. Unlike in credit cards where you have to pay a lot of overhead to handle the delays, etc.
For example, if you delay the last payment of your credit card, the bank will charge you extra for the delay. Such cutthroat practices are not encouraged or allowed when you use an EMI card.
Anyone Can Opt for an EMI Card
Remember the last time a bank promised you a credit card with a high limit and then when you furnished your details, refused to give you a card? Well, that’s because credit cards are based on eligibility. Not everyone can get a credit card because of its ridiculous eligibility criteria.
With an EMI card, anyone – from a college student to a housewife – can get one and freely use for any of their financial needs.
EMI Card can be registered, availed of, and used all in a single day. There’s no waiting or heavy documentation needed to begin your renewed financial journey with an EMI card. There are no hard and fast rules about who can join because there’s no background checks needed for an EMI card. It actually is a great feature especially if you a medical emergency and need to borrow immediately.
There are a lot of cases where a credit card will be declined and you will be left with depending on other options like cash. With an EMI card, that is not the case. You can freely use it across merchants – for bill recharges, travel and hotel booking, lifestyle shopping, food bills – and EMI card will cater to your needs.
It is due to all these great advantages that EMI cards have really grown in popularity. Apps like the Dhani App are being used by lakhs of users across India to fulfil their financial requirements. Dhani is preferred due to its easy conversion to EMIs and many more additional benefits. Learn more about them here.