Shopping is one key activity that humans will always indulge in. Whether it’s picking up a few t-shirts over the weekend from your nearest and favourite retail outlet, or spending hours on the internet trying to locate that one perfect party outfit, shopping can happen from across a range of physical and virtual stores and outlets.

As our channels for shopping have evolved and grown, so have our modes for payment. From the times of the barter system to metal to finally cash and paper money, the human system of currency has evolved significantly. Plastic money was a revolutionary product a few decades back, as people began to make purchases without the need for carrying cash.

In recent times, virtual money has emerged as the newest solution for shoppers. A virtual payment card, such as the Bajaj Finserv EMI Card, enables shoppers to buy premium products at no cost EMI and makes them eligible for shopping on EMI without credit card. Previously, the option for paying for purchases through Equated Monthly Installments (EMI) was available only to people who had credit cards to make these purchases. With the introduction of products such as the Bajaj Finserv EMI Card, available on Finserv MARKETS, this has expanded to include shoppers without credit cards. This card enables shoppers to buy premium products on no cost EMIs and with zero downpayment.

In addition to EMI Cards, people have also begun opting for availing personal loans in order to make their heavy expenditure. Personal loans allow people to avail a lump sum amount which they can spend as they wish and repay over a period of time. A personal loan has several benefits, the most notable of which is the lump sum amount they provide to borrowers at one shot thereby enabling borrowers to make their heavy purchases all at once.

A personal loan also enables shoppers to make their purchases at one shot and repay the amount borrowed over a period of time. However, there are several disadvantages to availing a personal loan for only shopping. Read on to learn more.

  1. Fixed Payments:
    When you avail a personal loan, regardless of the amount you borrow, you will be notified of the EMI amount you have to pay over a fixed duration of time. Since your personal loan amount is dictated by the amount of monthly salary you earn, all other metrics such as the amount you must regularly repay and the time period you must pay it over are also decided similarly.
    With a virtual payment card, you can decide in line with the lender as to how much amount you will be repaying and over how much duration of time. With the Bajaj Finserv EMI Card, available on Finserv MARKETS, shoppers can choose a repayment tenure ranging from 3 to 24 months that is more in line with their own requirements and aligned to their comfort.
  2. Higher Amount of Documentation and Vigilance:
    Since a personal loan involves a lump sum being made available to the borrower, there are more checks in place for people wishing to avail a personal loan. In order to avail a personal loan, you will be required to submit various documents which would not be the case while availing a virtual payments card. Your CIBIL score would also be scrutinised while applying for a personal loan, whereas for a virtual payments card, you can expect that level of vigilance to not take place.

  3. Mandatory Spending and Repayment:
    With a virtual payment card, you only repay the no cost EMIs for the products you have purchased on EMI without a credit card. This means that your expenditure and repayment are both situations you can control. However, with a personal loan, since you have already availed the lumpsum amount, you are required to repay EMI on the entire amount regardless of whether or not you have used or were meaning to use the amount.

  4. Foreclosure Charges:
    A personal loan will have a schedule you will need to abide by, in terms of making your repayment and clearing your outstanding balances. If you choose to close your EMI repayments earlier, you will be charged a significant amount as foreclosure fees. However, a virtual payments card has no such clause. You can pay your first EMI and then choose to foreclose the payment by making one lump sum repayment, and you will not be subjected to any foreclosure charges.

The factors listed above are only some of the ways in which a virtual payments card is much better than a personal loan. To avail the best virtual payments card today and buy premium products on EMI without credit card, apply for the Bajaj EMI Card through Finserv MARKETS. With this EMI Card, you can easily purchase premium products with no cost EMI and even zero down payment.