What is No Cost EMI – Know the advantages and disadvantages of No-Cost EMI, What are the benefits of No Cost EMI.
The importance of online shopping has increased a lot in our country. And different types of platforms keep popping up in India to take online shopping forward. And the option of No Cost EMI is also visible above some special respect by all these companies. But due to lack of information, people leave this option and move forward. Today, through this article, we are going to clarify the complete information related to what is meant by No Cost EMI . If you also want to get information related to this topic, then read this article of ours till the end
- What is No Cost EMI?
What is No Cost EMI?
When any person buys a product, he has to pay processing fee as well as some other interest charges. That extra cost we know by the name of EMI. But there are some products available online on which we do not have to pay any extra charges. In this, no amount is added except EMI, so we know it as No Cost EMI. This offer is offered by select banks only. If you are shopping from popular side like flipkart or amazon then you get highest no cost emi offers.
How does No Cost EMI work?
Various online shopping platforms offer no cost EMI options to woo the customers. No Cost EMI is delivered to the people in two ways. In the first method, the company gives the option of no cost EMI, then it provides a discount to the people on the lump sum amount of the product. This means that at No Cost EMI , you have to buy the product at full cost. And the second way is that the interest is included by the company in the product cost itself. And the reason for paying interest on the product is that zero percent interest is not allowed by RBI.
What are the benefits of No Cost EMI?
There are many benefits of buying a product on NO Cost EMI which are as follows:-
- The customer benefits through this process. If a person buys a product for one amount, then he has to pay only that price, apart from this no EMI is to be paid.
- No Cost EMI is given only on those products which have low demand.
- The products become more visible through No Cost EMI and this also benefits the banks.
- People find it easy to buy a No Cost EMI product as they do not have to pay any amount later .
- People feel at ease by providing a free amount on the purchase of any product.
What are the disadvantages of No Cost EMI?
There are also some disadvantages of buying a product on No Cost EMI which are as follows:-
- There is less demand for the product sold on No Cost EMI, so that’s why we should buy the product only after giving a lot of thought.
- The interest earned on the discount EMI becomes higher when you buy a cash item.
- Many times it happens that people buy expensive items due to EMI, then their budget gets messed up.
- If you have not paid your credit card bill, then ₹ 750 is deducted as fine with you.
Today, through this article, we have made you clear the complete information related to what is the meaning of No Cost EMI . If you have any difficulty related to this topic, any question comes in your mind, then you can ask us by commenting in the comment box below. We will try to provide solution to your problem as soon as possible.
What is No Cost EMI – Know the advantages and disadvantages of No-Cost EMI