Amazon, one of the top online shopping platforms in India, teams up with credit card companies to provide special deals, discounts, and no-cost EMI options. By using these offers, you can save money on your shopping, travel, dining, and entertainment expenses.
Cashback or discounts that are offered to customers are season dependent and are not always present. However, EMI options are generally offered throughout the year. There are two types of EMI option that are provided to you at Amazon these are:
No Cost EMI – The top choice on the list is when you won't be charged interest on your purchases if you convert them into EMI. The repayment period is up to 9 months, but for certain products like electronics, you might get a tenure of up to 12 months.
Instant EMI – Another option available at the time of payment is Instant EMI. With this option, an interest rate will be applied to the EMI conversion. The repayment tenure may extend up to 12 months or even longer.
| Credit Card Provider | Merchant EMI Interest Rate (p.a.) |
|---|---|
| HDFC Bank | 15% Onwards |
| SBI Bank | 14% Onwards |
| Standard Chartered | 13% Onwards |
| HSBC Bank | 12.5% Onwards |
| Citibank | 13% Onwards |
| ICICI Bank | 12.99% Onwards |
| Axis Bank | 13% Onwards |
| Kotak Bank | 12% Onwards |
Note: The banks & Amazon reserve the right to change the rates without prior notification.
Before applying for a credit card EMI, it's important to read the following section.
Credit Score – When you convert a purchase into an EMI, the amount you spent is held against your credit limit. This means your remaining credit limit decreases, and if you make more purchases, it could use up what's left of your limit. As a result, your credit utilization ratio increases. This ratio compares how much you've spent to your total credit limit on the card.
Timely Payments – If you've converted your purchase into EMI, it's crucial to pay the full outstanding amount, including the EMIs, by the due date. Missing a payment could result in late fees and high credit card interest rates. This could potentially lead to accumulating debt over time.
Reward Points/Discounts – Usually, converting purchases into EMI means losing out on reward points or discounts that are offered. If the discount provided is substantial, it's advisable to save money for the purchase instead of opting for EMIs.
Blocked Credit Limit – When you convert a purchase into EMI, the amount you spent will be blocked against your credit limit. This block will be lifted gradually with each EMI payment. You'll regain access to your full credit limit only after you've paid off the last EMI.
Correct Credit Card – If you have multiple credit cards, compare the interest rates offered on each of them. Banks consider various criteria when determining the interest rate, including loyalty, income, card type, and more.
Choose the Correct Tenure – Credit card providers often offer a lower interest rate on long-term EMI options and a higher interest rate on short-term ones. However, opting for the low-interest option might result in you paying a higher amount overall. For example, let's say your bank charges 20% per annum interest for a 3-month tenure, but only 18% per annum for a 12-month tenure. Now the interest amount that you will end up paying for a purchase of Rs. 10,000 will be-
Interest accrued on 3 month plan: Rs. 493.15 [10,000*(20%/365)*90]
While interest accrued on 12 month plan will be: Rs. 1,800 [10,000*(18%/365)*365]
Amazon provides the option for certain bank cardholders to convert their purchases into EMI using their debit cards. However, this feature is available only on select products and isn't accessible to all debit cardholders.
Yes, the offers displayed on Amazon's website are available to everyone. In addition to these offers, Amazon provides Prime offers that are exclusively for Amazon Prime subscribers.
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