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How do Monthly Installment Get Paid Automatically

24 Jul 2023

AMIPs (Automatic Monthly Instalment Payments) are a popular payment method that simplifies bill, loan, and subscription payments. For those tired of the tedious task of manually paying monthly bills, AMIPs offer a convenient solution.

AMIPs enable scheduled deductions from your account on a specified date each month, guaranteeing timely payments without the need to remember due dates.

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With AMIPs, you can authorise service providers to deduct a predetermined amount from your bank account or credit card without manual intervention. The payment amount and frequency are agreed upon between you and the payee.

To establish AMIPs, you share your payment details with the payee, who sets up the automatic payment. On the designated date each month, the agreed-upon amount is deducted from your account, and you receive a payment notification. Use the EMI calculator to know the best way to repay your loan without any hassle, choosing your tenure and interest rate with the loan amount you need

AMIPs provide convenience, better credit scores, less stress, savings, and time efficiency. Set up AMIPs by contacting your service provider, selecting the payment method, scheduling payments, providing payment information, and confirming authorisation.

Simplify your financial management and streamline your bill payments with AMIPs today!

In this article, we'll explore: 

What are AMIPs? 

How do AMIPs work?

What are the benefits of AMIPs?

How to set up automatic payments for your bills and loans?

Whether you're a beginner or considering a switch, this guide covers everything you need to know about automatic monthly instalment payments.

What are AMIPs?

AMIPs allow individuals to authorise service providers to deduct a predetermined amount from their bank account or credit card each month, without manual intervention.

The payment amount and frequency are predetermined and agreed upon between the payer and the payee.

How do AMIPs work?

To establish automatic monthly instalment payments, the payer shares their bank account or credit card details with the payee. Using this information, the payee sets up the automatic payment, which is deducted from the payer's account on the designated date each month. The payer receives a notification once the payment is processed.

If you want to know about the whole process of automatic monthly instalment payments.

Here's a step-by-step breakdown of how automatic monthly instalment payments typically work:

  1. Agree on Payment Terms: The payer and payee establish the payment terms, including the amount, frequency, and duration of automatic payments.
  2. Provide Payment Information: The payer provides their bank account or credit card details.
  3. Authorisation: The payer grants the payee permission to deduct the agreed-upon amount automatically from their bank account or credit card on a specified monthly date.
  4. Payment Processing: On the scheduled payment date, the payee initiates the payment process and deducts the agreed-upon amount from the payer's account or card.
  5. Payment Notification: The payee notifies the payer of the transaction.
  6. Review Payment History: Payer can review their payment history regularly to ensure the payment's accuracy.
  7. Cancel or Modify Automatic Payments: To cancel or modify automatic payments, the payer can contact the payee and request the required changes.

What are the benefits of AMIPs?

AMIPs offer multiple advantages for individuals seeking financial management and streamlined bill payments.

Here are five key benefits:

  1. Convenience: Automatic payments remove the need for manual intervention and simplify bill payment by eliminating the need to remember due dates.
  2. Improved credit score: Making regular on-time payments through automatic payments can enhance one's credit score, facilitating future credit access.
  3. Reduced stress: Automatic payments alleviate stress and anxiety related to timely bill payments and the fear of missing them.
  4. Cost savings: Opting for automatic payments from certain service providers can result in discounts or reduced fees, leading to long-term cost savings.
  5. Time saving: Automatic payments save time by eliminating the need to write cheques or manually initiate payments every month.

How to set up automatic payments for your bills and loans?

Setting up automatic payments is a straightforward process.

Here are the steps you can follow:

  1. Contact the Service Provider: Contact the service provider of the bill or loan and ask if they offer automatic payments.
  2. Choose Payment Method: Choose the payment method, either bank account or credit card.
  3. Set Up the Payment Schedule: Configure the payment schedule, specifying the amount, frequency, and duration.
  4. Provide Payment Information: Submit your payment details, including bank account or credit card information, to the service provider.
  5. Confirm Authorisation: Confirm the authorisation for automatic payments.

In conclusion, AMIPs offer convenience, improved credit scores, reduced stress, cost savings, and time efficiency. Follow the steps provided to set up AMIPs and simplify your bill-paying process.

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