With the growth of e-commerce and the need for affordable payment options, No Cost EMI has become a popular choice for shoppers.
But what exactly is No Cost EMI, and how does it work? Let’s understand here.
No Cost EMI is a payment option that allows you to buy products and pay for them in monthly installments without any extra interest or fees. This means you divide the total cost into smaller payments, and you only pay the original price—no added costs.
With a regular EMI, you pay a set amount each month that includes both the original price and interest. For example, if you buy a product for ₹30,000 on regular EMI for 6 months, you'll pay extra in interest, so the total cost will be more than ₹30,000.
In contrast, with No Cost EMI, you only pay the actual price of the product divided equally over the payment period. For example, if a product costs ₹30,000 and you choose a 6-month No Cost EMI, you'll pay ₹5,000 each month for 6 months, with no extra charges.
While No Cost EMI looks like a great deal, it’s important to know how it works. There are two main ways that shops and online stores offer No Cost EMI:
In this model, the seller gives a discount that matches the interest you would pay on a regular EMI. This means the seller pays the interest, so you don't have to pay anything extra.
Example: If a product costs ₹30,000 and the interest on regular EMI would have been ₹3,000 over 6 months, the seller offers a ₹3,000 discount. So, you pay ₹30,000, split into 6 monthly payments of ₹5,000 each, but in reality, the product was discounted by ₹3,000 to offset the interest cost.
In this method, the retailer works with a bank that gives you a loan with no interest. The retailer pays the bank the interest, so you only pay the original price of the product without any extra charges.
Example: You buy a smartphone worth ₹25,000 on No Cost EMI for 6 months. The bank offers a zero-interest loan, and the retailer pays the interest cost to the bank. You pay ₹4,166.66 each month, and the bank gets reimbursed for the interest by the retailer.
No Cost EMI is offered by many online shopping sites, retailers, and credit card companies. Some popular options include:
E-commerce Platforms: Amazon, Flipkart, Snapdeal.
Retailers: Croma, Reliance Digital.
Credit Card Providers: SBI Card, HDFC Bank, ICICI Bank, Axis Bank.
Consumers choose No Cost EMI, especially for big purchases, because of these key benefits:
Easy on Your Wallet: You don’t have to pay everything at once. You can split the cost into small monthly payments, making it easier to budget for expensive items like laptops or smartphones.
No Extra Interest: With No Cost EMI, you don’t pay any extra fees or interest. You only pay the price of the product, not a penny more.
Access to Premium Products: No Cost EMI makes it easier to buy expensive items. Things like high-end smartphones or appliances become affordable because you can pay over several months.
Available Everywhere: You can find No Cost EMI offers online and in stores. Whether shopping on Amazon or at a physical store, you can use this option.
Interest-Free: No Cost EMI is really interest-free for consumers, making it a better choice than regular loans or credit cards that charge interest.
Getting started with No Cost EMI is easy. Just follow these simple steps:
Look for products that offer No-cost EMI, either online or in stores. Most places show if a product is eligible for this option.
Once you pick your product, go to checkout. If shopping online, you’ll see the No Cost EMI choice in payment methods. Pick how many months you want to pay over (like 3, 6, 9, or 12 months).
No Cost EMI usually works with specific credit or debit cards from partner banks. Make sure to use a card that qualifies.
After choosing the EMI option, confirm your purchase. The bank will change your payment into an EMI plan, and you'll see the monthly amount on your next credit card bill.
Important: Some places might ask for a down payment or a fee upfront, so read the terms carefully.
While No Cost EMI has many benefits, it’s important to understand the rules. Here are some key points to remember:
Some stores or banks might charge a small processing fee for No Cost EMI. This fee is usually low, but you should include it when thinking about the total cost.
Sometimes, you may need to pay a part of the product’s price upfront. This is called a down payment, and the rest will be paid in monthly installments.
No Cost EMI usually allows payment over 3, 6, 9, or 12 months. Longer payment periods may not be available, so make sure the monthly payments fit your budget.
No Cost EMI mostly works with certain credit cards and some debit cards. If you don’t have a qualifying card, you might not be able to use this option. You also need enough credit limit on your card for the full purchase.
If you don’t pay your monthly installment on time, the bank will charge extra fees or interest. This could take away the benefits of No Cost EMI, so be sure you can make the payments on time.
| Aspect | Details |
|---|---|
| Eligibility | Available on select products with specific credit/debit cards |
| Interest | No additional interest charges applied |
| Processing Fee | May be applicable, depending on the retailer or platform |
| Down Payment | In some cases, down payment may be required |
| Loan Tenure | 3, 6, 9, or 12 months |
| Partner Platforms | Amazon, Flipkart, Croma, Reliance Digital, etc. |
| Credit Card Providers | SBI, HDFC, ICICI, Axis Bank, Bajaj Finserv EMI Card |
| Penalties | Late payment may attract fees and interest |
No Cost EMI is a great way for consumers to buy expensive items without having to pay the full amount at once or worry about extra interest charges. Whether you're getting a new smartphone, home appliance, or electronic device, No Cost EMI helps you manage your payments better.
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No Cost EMI is a financing option that allows consumers to purchase products and pay for them in monthly installments without any interest charges. Essentially, the cost is divided into equal payments over a specified period.
With No Cost EMI, the total cost of the product is divided into equal monthly installments. The retailer or lender covers the interest cost, so you pay only the principal amount over the tenure of the EMI.
Generally, there should be no hidden charges, but some retailers may impose processing fees or other charges. It's essential to read the terms and conditions carefully before proceeding.
Eligibility typically depends on factors such as your credit score, income level, and the specific policies of the retailer or lending partner. Retailers offer No Cost EMI options to customers with a good credit history.
No Cost EMI is often available for a wide range of products, but its availability can vary by retailer. Common categories include electronics, appliances, and furniture. Check with the specific retailer for eligible items.
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