Frequently Asked Questions (FAQs)

Find answers to frequently asked questions about EMI as a payment method supported at Razorpay Checkout.


1. Can my customers avail Offers for EMI payments at Checkout?

Yes, they can avail offer on debit and credit card EMIs. Know more about

.

2. If a customer chooses EMI as the payment method, do I get the full amount upfront?

Yes, you receive the full amount at once and the provider/bank converts it into EMI for the customer.

3. What happens when the customer fails to pay the EMI?

The loss is borne by the provider/bank. You would have already gotten the full amount.

1. How do banks perform the EMI eligibility check during the transaction flow?

Eligibility is checked using the card number and registered phone number. Therefore, customers should always use the phone number registered with the bank while making a payment.

2. What is the minimum balance required in the customer's account to avail Debit Card EMI?

None. Customers need not have any minimum balance in their accounts while placing the order. However, they need to ensure that their accounts have sufficient funds to pay the EMI due every month.

3. How will the customers know that they are eligible for Debit Card EMI?

Customers can check their eligibility by sending the SMS

DCEMI last 4 digits of Debit Card number to 56767, from their registered mobile number.

4. What is the criteria to avail Debit Card EMI?

To avail

, your customers should pass the eligibility criteria set by their banks. The minimum order amount on the Checkout should be ₹5000 (for HDFC and IndusInd debit cards).

5. Can you provide a list of the EMI plans and interest rates of different banks that support Debit card EMI?

The interest rates applied by each bank for Debit Card EMIs is provided below.

  • The minimum transaction amount for which EMIs can be availed on debit cards can vary for each bank.
  • The maximum transaction amount depends upon the available pre-approved limit for the customer.
Bank CodeIssuer BankMinimum Amount (in INR)3 months6 months9 months12 months18 months24 monthsMaximum Amount (in INR)
HDFCHDFC Bank5,00016%16%16%16%16%NANA
INDBIndusInd Bank5,00016%16%16%16%16%16%1,00,000

For Kotak Mahindra Bank (KKBK):

Tenures in MonthsMinimum Amount (in INR)Interest ratesMaximum Amount
3 months300019%100000
6 months500019%100000
9 months800019%100000
12 months800019%100000

6. Can the customers change the EMI plan after placing the order?

No, EMI plans cannot be changed after an order is placed.

7. Do customers need to pay any down-payment to avail Debit Card EMI?

No, the customers need not pay any down-payment amount to avail the Debit Card EMI option.

8. Is there a possibility to foreclose EMIs availed on Debit Cards?

Yes, Debit Card EMIs can be foreclosed after clearing the first three EMIs.

9. Which are the business categories for which Debit Card EMI is not allowed?

The Debit Card EMI payment method is not allowed for certain business categories. Refer to the status column of the

. Debit Card EMI is not allowed for categories with N as the status.

Watch Out!

Due to our partner bank restrictions, the Debit Card EMI payment methods may not be available to all the Merchant Categories and Subcategories.

1. What are the standard credit card interest rates charged by the banks for EMI?

The interest rates charged by various banks for each of the tenures are provided for your reference. The minimum transaction amount for which EMIs are applicable can vary for each bank. The maximum amount is dependent on the card limit set by the issuing bank.

Bank CodeIssuer BankMinimum Amount (in INR)3 months6 months9 months12 months18 months24 monthsLast Updated
AMEXAmerican Express500014%14%14%14%15%15%12 Oct 2023
BARBBank of Baroda250013%14%14%15%15%16%12 Dec 2023
CITICitibank250014%14%16%16%16%16%12 Dec 2023
FDRLFederal Bank250013%13%14%14%15%15%29 Mar 2023
HDFCHDFC Bank100016%16%16%16%16%16%10 Jan 2023
HSBCHSBC Bank200012.5%12.5%13.5%13.5%13.5%13.5%NA
ICICICICI Bank150015.99%15.99%15.99%15.99%15.99%15.99%29 Nov 2023
IDFBIDFC Bank250014%15%15%15%15%15%12 Oct 2023
INDBIndusInd Bank200014%14%15%15%15%15%12 Dec 2023
KKBKKotak Mahindra Bank300016%16%16%16%16%16%12 Dec 2023
RATNRBL Bank150013%14%15%15%15%15%05 April 2023
SBINState Bank of India250014%14%14%14%NANANA
SCBLStandard Chartered250011.88%13%14%14%15%15%NA
UTIBAxis Bank300016%16%16%16%16%16%12 Dec 2023
YESBYes Bank150016%16%16%16%16%16%12 Dec 2023

2. What are the interest rates charged by other credit cards for EMI?

The interest rates charged by other cards for EMI is given below.

CodeCard Network NameMinimum Amount (in INR)3 months6 months9 months12 months
Bajaj FinservBajaj Finserv49995%7%10%12%+
OnecardOneCard250016%16%16%16%

Watch Out!

Bajaj Finserv services are temporarily disabled.

1. What are the standard interest rates charged by the banks for cardless EMI?

The standard interest rates charged by various banks for cardless EMI are provided for your reference.

Cardless EMIIssuer BankProvider CodeMinimum Amount (in INR)3 months6 months9 months12 months18 months
InstaCredBank of Barodabarb500016%16%16%16%16%
InstaCredCASHecshe100016%15%14.67%14.50%NA
InstaCredHDFC Bankhdfc500016%16%16%16%16%
InstaCredICICI Bankicic700016%16%16%16%NA
InstaCredIDFC Firstidfb500024%24%24%24%NA
InstaCredKotak Mahindra Bankkkbk300020%20%20%20%NA
InstaCredKreditBeekrbe240018%18%18%18%18%
InstaCredTVS Credittvsc300027%27%27%27%27%
axioNAwalnut36990024%24%24%NANA
FibeNAearlysalary300030%30%30%NANA
ZestMoneyNAzestmoney9922%24%24%NANA

2. What are the standard interest rates charged by Pay Later providers for cardless EMI?

The standard interest rates charged by the providers for Pay Later providers are given below:

Pay Later15 days30 days45 days60 days90 days
SimplInterest freeNANANANA
ICIC PaylaterNANAInterest freeNANA
HDFC FlexipayInterest free28%NA28%28%
LazyPayInterest freeNANANANA

Watch Out!

LazyPay services are temporarily disabled.

Handy Tips

All interest rates mentioned above are per annum.

1. Who bears the cost for the discount given in No Cost EMI?

You, as a merchant, would bear the cost of No Cost EMI. It will be given as an upfront discount on the product cost to the end consumer. The discount percentage will vary by the bank and period of EMI.

2. Which payment methods can be used for No Cost EMI?

No Cost EMI is available on all credit card and debit card EMI banks.

3. Will the customers' banks continue to charge them interest?

Yes, the customers' banks will continue to charge them interest. However, this interest charge has been provided to the customer as an upfront discount at the time of purchase, effectively giving them the benefit of a No Cost EMI.

4. Can I enable No Cost EMIs at the Checkout?

Yes. Razorpay enables you to display No Cost EMIs at the Checkout. Know more about

.

5. How can I know about the percentage discount of the No Cost EMI that I bear?

Handy Tips

The banks charge GST to end consumers on the interest paid over and above the following amount.

Calculations on the cost incurred by the merchant at all standard plan and tenures are listed below:

Amount (in INR)Interest (in %)Tenure (in Months)Amount Paid by CustomerMonthly EMINo Cost EMI DiscountDiscountPricingTotal Cost (in %)
1000011%39,819.433333.33180.571.81%3%4.81%
1000012%39,803.283333.33196.721.97%3%4.97%
1000013%39,787.183333.33212.822.13%3%5.13%
1000014%39,771.133333.33228.872.29%3%5.29%
1000015%39,755.113333.33244.892.45%3%5.45%
1000011%69686.851666.67313.153.13%3%6.13%
1000012%69659.131666.67340.873.41%3%6.41%
1000013%69631.531666.67368.473.68%3%6.68%
1000014%69604.041666.67395.963.96%3%6.96%
1000015%69576.681666.67423.324.23%3%7.23%
1000011%99556.661111.11443.344.43%3%7.43%
1000012%99517.801111.11482.204.82%3%7.82%
1000013%99479.171111.11520.835.21%3%8.21%
1000014%99440.771111.11559.235.59%3%8.59%
1000015%99402.611111.11597.395.97%3%8.97%
1000011%129428.80833.33571.205.71%3%8.71%
1000012%129379.23833.33620.776.21%3%9.21%
1000013%129330.04833.33669.966.70%3%9.70%
1000014%129281.21833.33718.797.19%3%10.19%
1000015%129232.76833.33767.247.67%3%10.67%
1000011%189179.92555.56820.088.20%3%11.20%
1000012%189110.15555.56889.858.90%3%11.90%
1000013%189041.13555.56958.879.59%3%12.59%
1000014%188972.85555.561027.1510.27%3%13.27%
1000015%188905.30555.561094.7010.95%3%13.95%
1000011%248939.84416.671060.1610.60%3%13.60%
1000012%248851.41416.671148.5911.49%3%14.49%
1000013%248764.21416.671235.7912.36%3%15.36%
1000014%248678.23416.671321.7713.22%3%16.22%
1000015%248593.43416.671406.5714.07%3%17.07%

6. How does the No Cost EMI settlement work?

The order amount minus the entire interest subvented by you as a discount is settled in your bank account as per your

.

Watch Out!

However, Razorpay pricing is not included in this settlement, it will be applied in addition to the above amount.

7. Can I create No Cost EMI offers on Cardless EMI?

No, we do not support No Cost EMI offers on Cardless EMI.

1. Why should I run Low Cost EMI Offers?

Running Low Cost EMI Offers helps you attract a wider customer base by reducing the upfront cost barrier. This leads to increased sales and higher average order values.

Additionally, offering discount on interest for longer tenures sets you apart in a competitive market and opens opportunities for upselling, contributing to overall business growth and financial stability.

2. Who bears the cost for the discount given in Low Cost EMI?

As a business, you would bear the partial cost of Low Cost EMI, which appears as an upfront discount on the product cost to the end consumer.

You can decide the cost to subvent for each tenure and the customer bears the remaining cost. The interest percentage will vary by the bank and the EMI tenure. Know more about the

.

3. Which payment methods can be used for Low Cost EMI?

Low Cost EMI is available on all credit and debit card EMIs.

4. Will the customers' banks continue to charge them interest?

Yes, the customers' banks will continue to charge them interest. However, partial interest subvented by you appears as an upfront discount to the customers at the time of purchase.

5. Can I enable Low Cost EMIs at the Checkout?

Yes. Razorpay enables you to display Low Cost EMIs at the Checkout. Know more about

.

6. How can I know about the percentage discount of the Low Cost EMI that I bear?

You can decide how much percentage of the total interest you want to subvent during offer creation. This appears as an upfront discount on the product cost and the customer bears the remaining cost.

7. How does the Low Cost EMI settlement work?

The order amount minus the discount subvented by you is settled in your bank account as per your

.

Watch Out!

Razorpay pricing is not included in this settlement, it will be applied in addition to the above amount.

8. Can I create Low Cost EMI offers on Cardless EMI?

No, we do not support Low Cost EMI offers on Cardless EMI.


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