Saturday, December 10, 2022
HomeDigit NewsNo-cost EMI, is it really no cost?

No-cost EMI, is it really no cost?

Many companies and retailers sell products with attractive offers during the festive season. These also include no-cost Equated Monthly Installments (EMI) schemes. No-cost EMI allows customers to purchase products on installments without any additional interest or charges.

Many people often look for the festive season to buy new smartphones, vehicles and appliances. sales await. However, before making such a purchase, you must scheme There should be some information about When you opt for no-cost EMI or zero-cost EMI option for a purchase, you will only pay monthly installments for that product and there will be no interest or charges. This means that you will only pay the actual cost of the product and that will be divided into EMIs. Many banks offer no-cost EMI facility in various options.

Some lenders also offer zero down payment on specific products wherein you do not need to make any upfront payment and you can easily pay the price of the product in monthly installments. On the other hand, some banks charge a minimum amount as down payment and the rest has to be paid in EMI. With no-cost EMI, you can choose different repayment tenors as per the requirement. It can range from 3 months to 24 months. However, if this scheme sounds like a good fit for your purchase, there are a few things you should keep in mind.

In no-cost EMI, there is no interest on the principal amount but it does not mean that you will pay only the actual cost of the product. Many lenders charge a processing fee for this scheme. This gives the lenders interest in the form of processing fee. Apart from this, by opting for such a scheme, you often do not get a discount on the product, which you could have availed without the scheme. Consider these aspects before buying a product on no-cost EMI. Apart from this it is always advised to read the terms and conditions before purchase. This will not bother you later.

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