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Intro_TO_EMI

INTRODUCTION TO EMI

EMI provides an option to your customers for making total payment in easy equal monthly installments at the applicable interest rates from the list of banks and partners. This payment option encourages your customer to make big value purchases without worrying about paying the full amount upfront. Customers pay principal amount and interest in monthly equal installments.

With Pinelabs,you can offer your customers EMI as a payment method to buy various products on EMI using Debit Cards, Credit Cards, No Cost EMI, Low Cost EMI and Cardless EMI.

1. Overview​

CREDIT CARD EMI :- With digital-first payments everywhere, it’s never been easier to use credit cards for cashless transactions. With credit card EMIs, the amount you owe your card issuer is converted into an EMI the same way a personal loan is.

Credit card EMI payments serve as a viable option for those who can’t pay their credit card bills in one go. It is also appropriate for those who prefer to pay a small amount of what they owe and have the rest carried forward with an element of interest.

DEBIT CARD EMI :- Debit card EMI is a payment option that allows customers to pay for their purchases periodically. Instead of paying the full amount upfront, they can divide the total costs into small amounts. It is an option to convert payments made through debit cards into monthly instalments.

CARDLESS EMI :-Cardless EMI is a hassle free way to get instant credit in a completely digital, paperless way for your purchases at partner merchants. Customers will now be able to avail of the no-cost monthly instalments by entering their registered mobile number, PAN, and the OTP

Edge helps the merchant to offer no-cost, low-cost EMI on their products by bringing issuing bank and OEMs on the same platform.

1. EMI Programs​

We offer two types of EMI programs:

  1. BANK EMI :- It contain standard EMIs with global interest rates

  2. BRAND EMI :- Brand EMI offers specialized EMI plans that are co-created by the brand itself, often in partnership with financial institutions. This not only allows for more customized repayment terms but also provides exclusive offers and benefits tied to the brand, thereby enhancing customer loyalty and increasing sales for the brand and the merchant alike.

    It contains two models - Cashback Model( Single Cart) and Discount Model (Multicart).

2. EMI Models​

a. Single Cart Model : In this EMI is calculated on one product. This model supports the pre cashback, post cashback and instant discount subvention.

b. Multi Cart Model : In this EMI is calculated on multiple products. This model supports the instant discount subvention only.

EMI offers configuration can be requested to the Pinelabs team as per the requirements.

3. Subvention Types​

a. NO COST EMI - When Subvention discount/cashback given to customer is equal to interest paid by customer.

Example:- No Cost EMI refers to an EMI scheme where you don't have to pay any interest on your loan amount. For instance, you purchase a smartphone worth Rs. 10,000 using the Insta EMI Card and put the entire amount on 12-month EMI. Your monthly EMI will be Rs. 834 (10,000/12) with no interest on the principal amount.

b. LOW COST EMI - When subvention discount/cashback is given to customer is less than interest paid by customer.

c. STANDARD EMI - When there is no subvention discount/cashback given to customer.Its regular EMI given to the customer with interest rates.