The Reality of No-Cost EMI in India

If you open any online shopping platform in India, one word will definitely attract your attention, and that is “No-cost EMI.” Credit card companies are selling their cards in the name of this facility. If you don’t have much idea about it, you have landed in the right spot. In this blog, we will try to decode No-cost EMI, the reality of it, and whether you should use this feature or not. 

You are already aware of personal loans, their use, and sectors where people are getting them and enjoying benefits. At first glance, no-cost EMI looks better than any loan option. Let’s look at it and analyze important aspects to find out the truth. 

What Is A No-Cost EMI Feature? 

When you shop online, you can choose from a no-cost EMI facility. Here, you don’t need to pay any interest rate on the principal amount. By choosing this facility, you will get the product immediately, and a fiancé company will pay the amount on your behalf. You have to pay them back in easy installments. Most banks and financial companies claim that they are not adding any interest rate on the top; we will find out the actual situation in this blog.  

Is This Actually No-Cost? 

If you want to have a one-word answer, it should be no. Someone has to pay the interest cost. It is not necessarily the customer who will pay the amount. In some cases, either the seller or the service provider is paying the interest amount to boost their service and become popular in the market. 

There have been cases when a processing fee replaces the interest rate. Unless you read the documentation of the loan or the credit card company, it is hard to say who is paying the amount and how the whole thing is working. 

Working Mechanisms In No-Cost EMI

Those who haven’t used this service before, follow these steps-

  • Select Any Product Of Your Choice 

First, we need to select the product. Not all products are available for No-Cost EMI. Select those that have this facility. 

  • It is Up To You To Decide The Time Needed To Pay Your Debts 

Once you have selected the product, it is time to select the tenure you will take to repay the loan. Quarterly, half-yearly, and yearly are some of the common tenures people choose. You can choose a suitable tenure at your convenience. 

  • Easy Monthly Payment Options 

From then on, you have to pay the Credit Card DSA company a monthly payment of previously agreed money. It will continue unless the debt is fully paid. 

  • Use a Specific Credit Card for Zero Interest 

There are so many different credit card companies that offer similar benefits. Compare different cards and choose something that offers the most benefits. Consulting with a professional can help you in this situation. 

Why are More And More People Attracted to This Facility? 

After knowing the basics, it is time to learn about some of the benefits of using No-Cost EMI- 

  1. People are raving about this service because they can now pay the bill in easy installments without any interest being levied on the principal. 
  2. Almost all online shops offer these services, making it easy for us to select a facility and purchase one. 
  3. Using a No-Cost system, it has become easy now to buy phones and electronic shops that were previously beyond our budgets. 
  4. You will have complete freedom to choose the terms that suit your situation.

If you want to learn more about these facilities and make the right decision, get help from a personal loan agent.  

Are There Any Problems, too? 

Before having the No-Cost EMI, we also need to check if there are any problems. Some of the possible issues related to the system are as follows- 

  1. There have been cases where customers have learned about hidden costs at the last time. You need to check all the details thoroughly before buying any product online. 
  2. Sometimes, you will not have the facility without having a certain company’s credit card. In that case, applying for that credit card is the only solution. 
  3. Unless you read their contract in detail, it is hard to find any cash discounts associated. 

Keep these things in mind while shopping, and you can easily differentiate between real ones and those who want to scam you in the name of No-EMI. 

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