I recently purchased a Canon 550D camera using PaisaPay EMI facility.

Key features of PaisaPay EMI* :

• Available on ICICI, HDFC and Citibank credit cards
• Payment can be done in 3 or 6 monthly installments
• No interest charged on EMI payments
• Instant online approval of loan amount
• No paperwork required
• No down payment required

3 month EMI is not charged any convenience charges.

6 month EMI is charged an additional 2.5% of the order amount as convenience charges (including 10.3% service tax). This amount will be charged in 6 installments added to the installment amount appearing on your Credit card statement.

Example: Your total amount is Rs. 10000

You will be charged 2.5% on this amount i.e. Rs. 250 payable in installments. The total charge on your credit card for this transaction will be Rs. 10250. This amount will be charged in 6 installments therefore each installment will be Rs. 10250 / 6.

Important thing to note here is that you will be charged the full amount of the purchase.

This is what the eBay India support person ‘Lily B.‘ had to say:

Firstly although the EMI option has been chosen by you on the eBay site, it would actually be offered to you by your credit card issuing bank.

Therefore when you pay via credit card, the complete amount for that transaction would get blocked. But the amount would be deducted in the EMI format by your credit card issuing bank (ICICI Bank and HDFC bank).

Thus if you would check your monthly credit card statement, the amount would be shown as charged in EMI.

You are required to pay only the installment amount which will come in your monthly statement for next 6/3 months.

I personlly feel that eBay and PaisaPay are not been truthful about the entire transaction. Buyers looking to buy on eBay using PaisaPay EMI, beware, you are likely to be charged the whole amount. Do it at your own risk.