In this fast-paced world, choosing a smart payment option is essential. An EMI card is one such option that allows customers to buy big-ticket items, such as smartphones, furniture, and appliances, on easy instalments. One of the most popular EMI cards in India is the Bajaj Finserv EMI card.
If you are planning to apply for a Bajaj EMI card, it’s crucial to understand the charges associated with it. In this article, we provide a comprehensive guide to Bajaj EMI card charges.
What is a Bajaj EMI Card?
First things first, let’s understand the basics. The Bajaj Finserv EMI card is a payment card issued by Bajaj Finserv that allows customers to purchase products on easy monthly instalments. The EMI scheme enables customers to buy expensive items without paying the full amount upfront. The EMI facility is currently available at over 60,000 retailers across India.
How to Apply for a Bajaj EMI Card?
Applying for a Bajaj EMI card is a simple and straightforward process. You can apply for the EMI card both online and offline. To apply online, you need to visit the Bajaj Finserv website and fill out the application form. You will need to provide your personal and income-related details. Once you fill out the form, you’ll receive an instant approval or rejection of your application.
If you prefer the offline mode, you can apply for a Bajaj EMI card by visiting a Bajaj Finserv office or any partner store. You’ll need to provide your ID proof, PAN card, and address proof. The customer representative will guide you through the application process and inform you of the necessary charges and documentation.
What are the Charges Associated with a Bajaj EMI Card?
While the Bajaj EMI card comes with several benefits, you need to be aware of the associated charges. Below are the charges that one must keep in mind before applying for a Bajaj EMI card:
1. Joining Fee
The first charge that you’ll incur when you apply for a Bajaj Finserv EMI card is a joining fee. The fee varies between Rs. 399 to Rs. 1,199, depending on the type of card you choose. The joining fee is a one-time charge that you need to pay when you apply for the EMI card.
2. The Interest Rate
The next significant charge that you need to keep in mind is the interest rate. Bajaj Finserv charges an interest rate between 13% to 16% on purchases made using the EMI card. The interest rate is calculated on a reducing balance basis, which means the interest is calculated on the outstanding principal amount each month. The interest rate may vary, depending on the duration and amount of the loan.
3. Processing Fees
Bajaj Finserv charges a processing fee when you purchase a product on EMI. This fee is around 2% to 3% of the purchase amount and is non-refundable. The processing fee is included in the monthly instalment amount and is spread over the loan duration.
4. Pre-payment Charges
If you wish to close the loan before the end of the tenure, you’ll need to pay pre-payment charges. Bajaj Finserv charges a pre-payment penalty between 2% to 4% on the outstanding principal amount. The pre-payment charges vary depending on the type of loan and the duration of the loan.
5. Late Payment Charges
In case you miss an EMI payment due date, you’ll need to pay late payment charges. Bajaj Finserv charges a late payment fee of 2% per month on the outstanding EMI amount. The late payment charge is added to the subsequent month’s EMI.
Conclusion
In conclusion, the Bajaj EMI card is a great payment option that allows customers to purchase big-ticket items on easy instalments. However, before applying for the card, it’s important to understand the associated charges. As discussed above, the charges include joining fees, interest rates, processing fees, pre-payment charges, and late payment charges. By taking these charges into account, you can make informed decisions and avoid unpleasant surprises in the future.
Also read: 8 Advantages of Using a Personal Loan Calculator Before Borrowing
