Insta EMI Card or Credit Card: Which one to get

Know the difference between Bajaj Finserv EMI Cards and Credit cards. Explore the best option between a Credit Card and an EMI Card.
Insta EMI Card or Credit Card: Which one to get
2 min read
22 Nov 2023

Today, there are various affordable payment options available, making it challenging to choose the best one. EMI cards and credit cards are distinct financial tools. EMI cards suit budget-conscious individuals with interest-free instalment plans, while credit cards offer flexibility with a revolving credit line, incurring interest on unpaid balances. Understanding these differences is crucial for informed financial decisions tailored to your needs.

What is a credit card

A credit card is a card wherein the issuing bank will assign a limit to the cardholder. The cardholder can use this limit to pay for any expense, although in some cases, there might be some exceptions. At the end of each month, the cardholder has to pay back the entire outstanding (total of all the expenses made on the card in that month). In case the cardholder chooses to pay a part of the outstanding, a hefty interest is charged on the remaining outstanding until the repayment. For some of the transactions, a credit card also offers the option to convert the purchase into interest-bearing or interest-free EMIs.

Each time, the cardholder decided to convert the expense into an EMI, the available limit of the card is blocked for that amount until the time of repayment. A credit card can be used at any outlet that accepts a Visa or a Mastercard.

What is Insta EMI Card

In a Bajaj Finserv Insta EMI Card, our existing customer is assigned a line (loan amount available for purchase on EMIs). Our existing customers can use this card to purchase any of our 1 million+ products ranging from electronics, apparel, gadgets, furnishing, and more across our partner online and offline network.

Each purchase made on the Insta EMI card is treated as a loan wherein the corresponding loan number is assigned to you. You can pay back this loan in EMIs over the tenure opted by you. You can make multiple purchases as long as the total amount spent is less than the line assigned to you. You also have the convenience of choosing different tenures for different purchases.

Difference between a credit card and the Insta EMI Card

Serial No.

Comparison Point

Credit Card

Insta EMI Card

1

Interest on Purchases

No interest if paid in full by the due date; 100% payment required each month.

Pay for purchases in up to 24 EMIs with no interest; special promotions may eliminate the need for a down payment.

2

Pre-approved/Pre-assigned Limits

Need to complete the application process and provide personal/income details to know the pre-approved limit.

Existing customers receive a pre-approved limit; new customers can generate offers with a valid mobile number.

3

Foreclosure Charges

No concept of foreclosure charges.

Can foreclose the loan anytime during tenure without extra charges; the full outstanding amount needs to be paid.


Step-by-step guide to applying for the Bajaj Finserv Insta EMI Card

  1. Enter your 10-digit mobile number and verify the OTP sent to your phone.
  2. Fill in the application form with your basic details.
  3. Select your employment type and gender.
  4. Click on submit to know your card limit.
  5. Verify your KYC using your Aadhaar card or DigiLocker.
  6. Post successful KYC, pay a one-time joining fee of Rs. 599.
  7. Click on ‘Activate Now’ and enter your bank account number and IFSC code to complete the e-mandate process.
  8. After successful e-mandate registration, your card is ready to use.

Note: The online process may differ depending on whether you are a new customer or have an existing relationship with us.

Apply for an Insta EMI Card Online

Conclusion

In summary, choosing between an EMI card and a credit card depends on individual financial needs, spending habits, and discipline. EMI cards are specialised for planned purchases with fixed monthly instalments, offering budgeting convenience but lacking the versatility and rewards of traditional credit cards.

In contrast, credit cards provide broader financial flexibility, rewards, and credit history building but come with the risk of accumulating high-interest debt if not used responsibly. Ultimately, the decision should align with financial goals, spending patterns, and credit management abilities. Understanding the terms and conditions is crucial for making a choice that fits your financial situation and preferences, emphasizing responsible financial management regardless of the chosen option.

Disclaimer

While care is taken to update the information, products, and services included in or available on our website and related platforms/ websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/ service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/ service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply

Frequently asked questions

Can I use the Bajaj Finserv Insta EMI Card as a credit card?

The Insta EMI Card cannot be used as a credit card when it comes to withdrawing money from the ATM or drawing a personal loan against the available limit.

What is the difference between EMI Card and Credit Card?

The key difference between the Insta EMI Card and credit card is the No Cost EMI facility. While credit cards charge interest on EMIs, Insta EMI Card offers interest-free EMIs.

Are EMI cards and credit cards the same?

Both cards function in a similar manner where a customer is being offered a credit limit. That said, Bajaj Finserv Insta EMI Card offers interest-free EMIs known as No Cost EMIs. Credit cards usually levy interest rates on EMI conversion.

Which is better: EMI or a credit card?

Insta EMI Card is the best option for EMIs due to the No Cost facility. Credit cards charge interest on EMIs but they also give high reward points in spends.

What are the benefits of an Insta EMI Card over a Credit Card?

The key benefit of the Bajaj Finserv Insta EMI Card is that it offers No Cost EMIs. It means, that you don’t have to pay interest on your EMIs whereas a credit card usually levies interest on EMIs.

How does the repayment process differ between the two?

Using the Insta EMI Card, you can choose a repayment tenure of up to 36 months and pay the EMIs over the chosen tenure. Credit Card EMIs also work in a similar manner where you could choose a repayment tenure.  What makes the Insta EMI Card more beneficial is its No Cost EMI Scheme, which eliminates interest charges on your EMIs.

Is the Insta EMI Card suitable for big-ticket purchases?

Yes, the Insta EMI Card is best suited for purchases of up to 2 lakh.

Do both options impact my credit score?

Both cards may have a positive and a negative impact on your credit score. If you pay your EMIs on both cards on time, it will help improve your credit score.

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