{"id":19209,"date":"2024-11-27T15:55:41","date_gmt":"2024-11-27T10:25:41","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=19209"},"modified":"2026-02-04T15:02:43","modified_gmt":"2026-02-04T09:32:43","slug":"bank-or-brand-emi","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/bank-or-brand-emi\/","title":{"rendered":"Bank EMI vs Brand EMI: Which Option is Best for Your Customers?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">With India\u2019s household spending projected to surge by INR 60 trillion by FY26, the demand for flexible and affordable payment options is skyrocketing. During the Great Indian Festival 2024, Amazon revealed that 1 in 4 purchases were made using EMIs\u2014a clear indication of their growing popularity. EMIs empower customers to achieve their aspirations without the burden of upfront payments. But with multiple EMI options available, how can merchants decide which one is the perfect match for their business and their customers?<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li><strong>Bank EMIs<\/strong> allow customers to convert purchases into monthly instalments using their bank cards, offering flexible tenures and wide category support.<\/li>\n<li><strong>Brand EMIs<\/strong> are offered directly by brands in partnership with financial institutions and often include no-cost or low-cost deals, plus cashbacks and promotions.<\/li>\n<li>Bank EMIs are more universally accepted across merchants and products, while Brand EMIs are tied to specific items or brand campaigns.<\/li>\n<li>Customers looking for savings and offers may prefer Brand EMIs, while those wanting broader applicability and tenure options might go with Bank EMIs.<\/li>\n<li>A combined offering like <strong>EMI\u00b2 by Razorpay<\/strong> enables merchants to provide both types of EMIs in one solution, boosting customer conversion and satisfaction.<\/li>\n<\/ul>\n<\/div>\n<h2>What is Bank EMI?<\/h2>\n<p><span style=\"font-weight: 400;\">Bank EMI is a flexible payment option facilitated by the customer\u2019s bank, suitable for a wide range of purchases.<\/span><\/p>\n<p><b>Key Features:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Eligibility:<\/b><span style=\"font-weight: 400;\"> Customers must have a credit or debit card from participating banks.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Interest Rates:<\/b><span style=\"font-weight: 400;\"> Typically range between 14-16%, covered by the customer.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Flexibility:<\/b><span style=\"font-weight: 400;\"> Tenure options from 3 to 24 months, ideal for larger purchases.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Why Bank EMIs work:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><b>Universality:<\/b><span style=\"font-weight: 400;\"> Covers most product categories, giving customers the freedom to shop across segments.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>High Loan-to-Value Ratios:<\/b><span style=\"font-weight: 400;\"> Financing up to 90-95% of the purchase value, especially for long-term loans post-COVID.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Transparent Costs:<\/b><span style=\"font-weight: 400;\"> Clear interest rates allow customers to plan their finances confidently.<\/span><\/li>\n<\/ul>\n<h2>What is Brand EMI?<\/h2>\n<p>Brand EMI is a financing option offered by a merchant, either directly or in partnership with a bank or NBFC, that allows customers to split the cost of a product or service into fixed monthly instalments over a chosen tenure.<br \/>\nCompared to regular EMIs, Brand EMIs often come with added benefits like instant discounts, cashback, or special offers, making them a popular and cost-effective payment choice for customers.<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Key Features: Includes No-Cost or Low-Cost EMI and\/or Cashbacks.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Eligibility: Generally requires a credit card, with terms set by the brand.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Transaction Value: Primarily for high-value products, though increasingly available for lower-priced items.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Why Brand EMIs work:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Customer Delight: No interest charges for customers, enhancing their shopping experience.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Exclusive Deals: Tailored cashbacks and discounts create urgency and exclusivity.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Upselling Opportunities: Merchants can promote premium products with appealing financing options.<\/span><\/li>\n<\/ul>\n<h2>Benefits of Brand EMI<\/h2>\n<h3>Benefits of Brand EMI for Customers<\/h3>\n<p>\u2022 Makes high-value purchases affordable through fixed monthly instalments<br \/>\n\u2022 Offers extra savings via discounts, cashback, or no-cost EMI offers<br \/>\n\u2022 Eliminates the need for separate loan applications or paperwork<br \/>\n\u2022 Keeps monthly expenses predictable and easier to manage<br \/>\n\u2022 Enables quicker purchase decisions without upfront financial strain<\/p>\n<h3>Benefits of Brand EMI for Businesses<\/h3>\n<p>\u2022 Increases conversion rates by reducing price sensitivity at checkout<br \/>\n\u2022 Boosts average order value by enabling higher-ticket purchases<br \/>\n\u2022 Improves customer acquisition and repeat purchases<br \/>\n\u2022 Shortens sales cycles by offering instant financing options<br \/>\n\u2022 Enhances checkout experience with seamless EMI integration<\/p>\n<h2><strong>Bank EMI vs. Brand EMI: Key Comparisons<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-19212 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2024\/11\/Blog-EMI-Table.png\" alt=\"Comparison chart highlighting the key differences between Bank EMI and Brand EMI, including eligibility, cost to customer, best use cases, interest rates, and flexibility.\" width=\"1200\" height=\"695\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2024\/11\/Blog-EMI-Table.png 1200w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2024\/11\/Blog-EMI-Table-300x174.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2024\/11\/Blog-EMI-Table-1024x593.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2024\/11\/Blog-EMI-Table-768x445.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">Which EMI option is Best for Your Customers?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For<\/span><b> price-sensitive customers<\/b><span style=\"font-weight: 400;\">, Brand EMI offers the perfect solution with no additional costs and promotional benefits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For <\/span><b>flexibility seekers<\/b><span style=\"font-weight: 400;\">, Bank EMI provides extensive tenure options and wider applicability.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Razorpay Enhances the EMI Experience<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Merchants aiming to cater to diverse customer preferences need a solution that integrates both Bank and Brand EMI seamlessly. This is where <\/span><b>EMI\u00b2 by Razorpay<\/b> <span style=\"font-weight: 400;\">comes in.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Key Features of EMI\u00b2 by Razorpay:<\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Partnerships with 18 credit card providers, 2 debit card providers, and 70+ leading brands.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Real-time offer discovery via Catalog feature, empowering customers to choose the best financing option.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Advanced algorithms ensure personalized recommendations, boosting conversion rates by up to 10%.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unique offering of <strong>EMI Plus.<\/strong><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What Makes EMI Plus Unique?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">EMI Plus allows merchants to offer No Cost EMI on products without existing brand tie-ups, providing a competitive edge.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">For Merchants:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Easily sell unsold inventory<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stand out with exclusive No Cost EMI options<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Boost footfall and transaction volumes<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">For Customers:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Access hassle-free no-cost EMI for high-value products<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Transparent pricing with no hidden charges<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Unlike competitors, EMI Plus offers:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Higher wallet limits: Cover products up to INR 1,00,000 (vs. INR15,000 elsewhere)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Longer tenure: No-cost EMI for up to 6 months<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lower fees: Only 1% processing fee, much lower than competitors\u2019 6-7%<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">The Right EMI for Every Customer<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether it\u2019s the flexibility of Bank EMI or the exclusivity of Brand EMI, merchants can effectively meet customer needs and drive higher sales. By understanding each type, merchants can recommend the best option, boosting loyalty.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With <\/span><b>EMI\u00b2 by Razorpay<\/b><span style=\"font-weight: 400;\"> unlock new growth opportunities while delivering unmatched customer satisfaction. From real-time offer discovery to zero-cost EMI for untapped SKUs, Razorpay makes affordability your sales driver.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Explore EMI\u00b2 by Razorpay today and empower your customers to shop with ease.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With India\u2019s household spending projected to surge by INR 60 trillion by FY26, the demand for flexible and affordable payment options is skyrocketing. During the Great Indian Festival 2024, Amazon revealed that 1 in 4 purchases were made using EMIs\u2014a clear indication of their growing popularity. EMIs empower customers to achieve their aspirations without the<\/p>\n","protected":false},"author":156,"featured_media":19210,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[518,549],"tags":[580,812,813,374,581],"class_list":{"0":"post-19209","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-affordability","8":"category-razorpay-pos","9":"tag-affordability","10":"tag-bank-emi","11":"tag-brand-emi","12":"tag-emi","13":"tag-emi-checkout"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/19209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/156"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=19209"}],"version-history":[{"count":10,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/19209\/revisions"}],"predecessor-version":[{"id":25740,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/19209\/revisions\/25740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/19210"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=19209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=19209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=19209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}