EMI
EMI (Equated Monthly Installments) is a payment mode that lets customers split a purchase into smaller, scheduled payments over a defined period. Instead of paying the full amount upfront, the customer pays a fixed amount each month until the total is cleared. Nimbbl supports multiple EMI variants — Card EMI (credit and debit) and Cardless EMI — enabling merchants to offer flexible affordability options at checkout.
What is EMI
EMI converts a single transaction into a series of monthly payments. The customer selects an EMI plan during checkout, chooses their preferred tenure (number of months), and completes the payment. The EMI issuer (the customer's card issuer or a lending partner) pays the merchant the full amount upfront, and the customer repays the issuer in installments.
In the context of EMI, an issuer is the entity that provides the installment facility — this could be a bank (for Card EMI and Debit Card EMI) or a lending partner (for Cardless EMI).
EMI payments in Nimbbl are identified by the payment_mode values Credit Card EMI, Debit Card EMI, or Cardless EMI. Key EMI-specific attributes include:
| Attribute | Description |
|---|---|
tenure | Number of monthly installments (e.g., 3, 6, 9, 12) |
frequency | Payment frequency (typically monthly) |
installment_amount | Amount the customer pays per installment |
interest_rate | Annual interest rate applied to the EMI |
interest_amount | Total interest charged over the EMI tenure |
subvention_type | Type of subvention: no_cost or low_cost |
issuer_code | Code identifying the issuer offering the EMI |
card_network_code | Card network code (Visa, Mastercard, etc.) |
Types of EMI
Card EMI
Card EMI is the most common EMI type. The customer uses their credit or debit card to make the purchase, and the card issuer converts the transaction into monthly installments. The EMI amount is charged to the customer's card statement each month.
Card EMI inherits all attributes from the underlying card — network, geography, type, issuer, and country. These card attributes determine which EMI schemes are available, because schemes vary by card network, issuer, and geography. For example, an EMI scheme might be available only for HDFC Visa credit cards with a minimum transaction amount of INR 3,000, over tenures of 3, 6, or 9 months.
Card EMI is available on credit and debit cards from supported issuers. The available tenure options and interest rates depend on the issuer and any active EMI schemes. Debit Card EMI availability is more limited than credit card EMI and depends on the customer's bank supporting the feature and the customer being pre-approved.
Cardless EMI
Cardless EMI allows customers to avail EMI without needing a credit or debit card. Instead, lending partners provide the installment facility based on the customer's eligibility. Common Cardless EMI providers include Bajaj Finserv, Axio, HomeCredit, and Snapmint.
The Cardless EMI flow typically works as follows:
- Customer selects Cardless EMI during checkout
- The customer chooses a lending partner from the available options
- The lending partner checks the customer's eligibility (based on mobile number, PAN, or other criteria)
- If eligible, the customer selects a tenure and confirms the EMI plan
- The lending partner pays the merchant, and the customer repays the lending partner in installments
Cardless EMI schemes vary by provider rather than by card attributes. The eligibility and available tenures depend on the provider's assessment of the customer.
EMI Tenure and Interest
EMI plans are defined by tenure (the number of months) and interest rate. Common tenure options are:
| Tenure | Typical Use Case |
|---|---|
| 3 months | Small to medium purchases |
| 6 months | Medium purchases |
| 9 months | Larger purchases |
| 12 months | High-value purchases |
| 18-24 months | Premium and high-value items |
The interest rate varies by issuer, tenure, and whether a subvention (discount) is applied. The total cost to the customer includes the principal amount plus interest, divided equally across the installments.
EMI eligibility depends on the issuer's minimum transaction amount. Minimum order values and supported tenures vary by issuer.
Subventions
A subvention is a discount applied to the EMI interest, funded by the merchant or brand, to make installment plans more attractive to customers. Nimbbl supports two subvention types:
Both subvention types support two discount mechanisms — you choose one per subvention:
- Interest discount — the benefit is applied upfront at checkout, reducing the displayed interest rate
- Cashback discount — the customer pays the standard amount and receives the benefit after order completion
No-Cost EMI
No-cost EMI eliminates the interest cost entirely. The customer's effective interest rate is 0% — the sum of all installments equals the product price with no additional charges. The merchant absorbs the full interest cost of the EMI scheme.
Low-Cost EMI
Low-cost EMI reduces the interest rate without eliminating it entirely. The merchant specifies a subvented interest rate greater than 0%, and absorbs the difference between the EMI scheme's standard rate and the specified rate. The customer pays the reduced rate.
For example, if an EMI scheme has a standard interest rate of 15% and the merchant sets the subvented rate to 7%, the customer pays 7% interest and the merchant absorbs 8%.
How Subventions Work
- Merchant or brand creates a subvention — this defines the subvention type (
no_costorlow_cost), eligible issuers, tenures, and discount values - Customer selects an EMI plan at checkout — eligible schemes show the subvented rate instead of the standard rate
- Interest is reduced — for no-cost, the effective rate is 0%; for low-cost, the effective rate is the merchant-specified reduced rate
- Merchant is charged — the subvention cost (the interest absorbed) is deducted from the merchant's settlement
Subvention management is handled through Boostr Affordability. Merchants create and configure subventions in the Command Center.
No-cost EMI drives the highest conversion on high-value products. Low-cost EMI is a practical alternative when absorbing the full interest cost is not commercially viable. Use Boostr Affordability to configure both types.