Loan options known as “no-interest EMIs” allow you to pay off a purchase over time without incurring any interest. Despite the fact that this may initially appear appealing, there is a cost involved. This usually comes in the form of a discount on the products or services in question that you wouldn’t have gotten otherwise.
Credit cards can be useful when making large purchases. With the EMI options offered by many credit cards, you can easily purchase expensive items. Free EMIs are available on credit cards from a number of banks. With free EMI credit cards, customers can purchase electronics without worrying about a down payment or processing fees.
What is a free EMI choice?
If you want to buy a refrigerator, television, or washing machine but don’t want to pay the full price upfront, no-interest EMI might seem like a good option. Vendors collaborate with banks and non-banking financial institutions (NBFCs) in order to offer free EMIs to customers.
List of participating banks for free EMIs:
How does No-Cost EMI work?
Axis Bank, HDFC Bank, State Bank of India, Yes Bank, and Kotak Mahindra Bank
You will be required to pay the full purchase price if you select the free EMI option. For instance, if a person purchases a Rs. If they choose a 6-month EMI, they will be responsible for paying Rs. 2,000 monthly. Interest and processing fees are combined to cost Rs. 0. Consequently, the customer must pay Rs altogether. 12,000.
When is the best time to select the no-cost EMI option?
when you can’t pay for an expensive item right away or in full. Additionally, when you use the free EMI option to buy a product online, some merchants may offer credit card discounts or cashback.
What are the benefits and drawbacks of the free EMI option?
Advantages:
It empowers an improvement in living by permitting the acquisition of expensive things in regularly scheduled payments. Additional products, such as vacation packages, cosmetics, and furniture, now offer zero-interest EMI. and also.
Disadvantages:
A low-cost EMI credit is similar to a no-cost EMI credit. Customers may pay significantly more than if they had paid in cash. A customer may make poor purchasing decisions as a result of a free EMI. A missed EMI payment could result in a low credit score.
