Kotak launches EMI facility for all debit cardholders

By Leandra Monteiro

In a move that significantly expands the size, scope and reach of buy now, pay later financing, and increases choice for consumers, Kotak Mahindra Bank Ltd (KMBL) today announced that all eligible Kotak debit cardholders can now avail the Equated Monthly Instalments (EMI) on Debit Card facility on all their mid and high-value purchases, at all offline and online stores across the country.

Offered under the #KotakSmartEMI initiative, this enables KMBL customers to make purchases from groceries and fashion to smartphones and electronics – at any merchant establishment and pay via easy instalments.

So far, shoppers could avail EMI on debit cards only at particular outlets based on a tie-up between the merchant and the bank. Now, under the #KotakSmartEMI initiative, KMBL has extended the EMI on Debit Card facility to cover all permitted categories at any merchant store across the country, thus giving KMBL customers the convenience and freedom to buy virtually everything on EMIs. Transactions of INR 5,000 or more can be converted into EMIs with no paperwork or documentation required.

Ambuj Chandna, President – Consumer Assets, Kotak Mahindra Bank said, “EMI on debit cards increases affordability for consumers, giving them the ability to pay for big-ticket purchases in small and easy instalments. In response to an increase in demand from our customers for EMI-based transactions, we are pleased to be able to significantly enhance the scope of our Pay Later offering for our customers by extending the EMIs on Debit Cards facility to almost all purchases made on one’s Kotak debit card.”

Further, with debit cards far outpacing credit cards in terms of number of cards, this initiative opens doors to affordable and convenient access to credit to a large, hitherto underserved market,” added Ambuj Chandna.