EMI – Equated Monthly Installments (Buy Now Pay Later) is a scheme offered by different banks in Nepal to enable a person to buy products in easy installments. For Instance, say a person requires a mobile phone but he doesn’t have that full money to pay for that, in that case, a person can apply for an EMI scheme and get the product without paying the full amount of the product initially. Online Saathi with the help of banks provides EMI services in Nepal. There are various types of EMI that have different cost benefits.
There are Two Types of EMI Schemes available in Nepal: –
No Cost EMI- Interest cost waived by banks or financial institutions offering EMI schemes.
-For Short Duration (3-6 Months)
-Interest Rate – Zero (nil)
-Few Banks like NIC Asia, Sunrise Bank, and Machhapuchhre Bank are offering this EMI
Standard EMI- Interest will be charged on every installment (As per Banks Rate)
-For Long Duration (above 6 Months)
-Interest Rate (Starts from 8% To 24%)
Products Available in EMI
These are the products that are available in EMI services in Nepal
-Home Appliance (Television, Refrigerator, Washing Machine, Vacuum cleaner, Laptop, Air-conditioner, etc.)
-Camera
-Expensive gadgets
-Jewelry
-Motor Vehicle (4 Wheelers & Two Wheelers)
– Tour Package
– Cosmetics Surgery, Diagnostic & other Surgery
The minimum price of the product must be Rs. 15,000/- for Standard EMI and there is no minimum Cost for No Cost EMI
To avail of products in EMI all, you need is to have a credit card if not then you have to apply for the credit card. Note: – EMI will also be available on the debit card very soon
Requirements for Credit Card to avail EMI scheme
The person who does not have a credit card and wants to avail of EMI must be salaried, self-employed, or have a business entity.
Documents Required for Credit card and EMI
- For Individual (salaried)
- Income Letter
- Bank Statement (3-6 Months) or Pay Slip of last 6 Months
- Copy of Citizenship
- Passport Size Photo
- For Self Employed and Business Entity
- Copy of Certificate of registration
- Copy of PAN /VAT
- Audit Report if Applicable
- Bank Statement- if not the audit report
- Tax Clearance
- Copy of citizenship (proprietor/ Director/Chairman)
- Passport Size Photo (proprietor/ Director/Chairman)
(Note: – There might be other documents required for no-cost EMI please call our customer support to know more about No Cost EMI)
EMI and Credit Card Related FAQ
FAQ on EMI services in Nepal
1. How Much Time will it take to get the Product on EMI?
►If you already have Credit Card It takes 2 days hardly in the case of a No credit card it depends on Banks (generally 5-7 days). In Some Cases, it took more than a week.
2. What is DO?
►DO means Delivery Order which will be provided by banks to the merchant to deliver the product to the customer. (basically, it is a confirmation to the merchant to deliver the product to the customer)
3. EMI will be always on MRP?
►Not Necessarily It may be below MRP or above MRP, it depends on product and Interest Cost
4. If I Earn Rs. 25000 thousand in a month, will I get an EMI of Rs 1 Lakh product?
►Yes! but you have to do a down payment, generally, banks give a limit and that is based on monthly salary and another parameter. The maximum limit is 2.5 times your salary.
5. How is the limit Decided by banks and financial institutions?
►It depends on lots of factors such as employment type/business type, own or rented residential property, vehicle owned, No of the year of business or Employment, Credit rating, and other factors.
6. Which Banks provide an EMI facility?
►Almost every A-class bank these days provides an EMI facility.
7. I have a credit card What will be the process to get EMI?
►You need to take a Quotation for the products you want from the merchants and visit the Banks. You can Download the Quotation from our Website www.onlinesathi.com
8. Are products purchased in Emi genuine?
►Yes! Every product purchased in EMI is genuine and Original that comes with a proper bill and warranty.
9. I am a student; Do I get the products in EMI?
►Yes! But all you need is to have credit cards (Soon EMI in Debit card will Also Be Available). Some banks provide credit cards to students also.
10. Is this facility available for the outside valley also?
►Yes, Banks and online Saathi provide this facility almost everywhere in Nepal.
11. EMI or Cash Purchase which one is Better?
►If you can earn the installments from the money you don’t pay at first then go for EMI otherwise cash purchase is better (Standard EMI have some Interest)
12. Do I have to pay anything extra to the banks?
►You have to pay for a credit card (Rs.500-Rs.1000) some banks don’t charge however few banks also charge a loan processing fee of 1% or 1000 whichever is lower.