EMI - Equated Monthly Installments (also known as Buy Now Pay Later) is a scheme offered by different banks of Nepal to enable person to buy the products on easy installments. For Instance, say a person have a need of mobile phone but he doesn’t have that full money to pay for that, in that case a person can apply for EMI scheme and get the product without paying full amount of the product initially.
There are Two Types of EMI Scheme available in Nepal: -
No Cost EMI- Interest cost waived by banks or financial institution offering EMI Scheme.
-For Short Duration (3-6 Months)
-Interest Rate – Zero (nil)
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
-Home Appliance (Television, Refrigerator, Washing Machine, Vacuum cleaner, Laptop, Air-conditioner etc.)
-Motor Vehicle (4 Wheelers & Two Wheelers)
- Tour Package
- Cosmetics Surgery, Diagnostic & other Surgery
Minimum price of the product must Rs. 15,000/- for Standard EMI and there is no minimum Cost for No Cost EMI
To avail products in EMI all you need to have a credit card if not then you have to apply for the credit card. Note: - EMI will also be available on debit card very soon
Requirements for Credit Card to avail EMI scheme
For person who does not have credit card and wants to avail EMI must be salaried, self employed or having its own 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 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
- How Much Time will it take to get the Product on EMI ?
- If you already have Credit Card It takes 2 days hardly in case of No credit card it depends on Banks (generally 5-7 days). In Some Cases, it took more than a Week.
- 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 confirmation to the merchant to deliver the product to the customer)
- EMI will be always on MRP?
- Not Necessarily It may be below MRP or above MRP, it depends on product and Interest Cost
- If I Earn Rs. 25000 thousand in a month, will I get EMI of Rs 1 Lakh product?
- Yes! but you have to do down payment, generally banks give limit and that is based on monthly salary and other parameter. Maximum limit is 2.5 times of your salary.
- How is limit Decided by banks and Financial institution?
- It Depends on lots of factor such as employment type/business type, own or rented residential property, vehicle owned, No of year of business or Employment, Credit rating and other factors.
- Which Banks provides EMI facility?
- Almost every A class banks these days provides EMI facility.
- If have credit card What will be the process to get EMI?
- You need to take Quotation for the products you want from the merchants and visit the Banks. You can Download the Quotation from our Website www.onlinesathi.com
- Are products purchased in Emi genuine?
- Yes! Every product purchased in EMI are genuine and Original that comes with proper bill and warranty.
- I am a student; Do I get the products in EMI?
- Yes! But all you need to have credit cards (Soon EMI in Debit card will Also Be Available). There are banks that provides credit card to students also.
- Is this facility available for outside valley also?
- Yes, Banks and onlinesaathi provides this facility almost everywhere in Nepal.
- 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)
- Do I have to pay anything extra to the banks?
- You have to pay for credit card (Rs.500-Rs.1000) some banks don’t charge however few banks also charge loan processing fee of 1% or 1000 whichever is lower.