As the festive season arrives, the markets increase in the markets. Whether it is online cell or huge discount in the mall, everyone wants to buy something new like new mobile, TV, fridge, washing machine or furniture. But when the pocket does not go, then options like ‘No Cost EMI’ look very attractive.
But in such a situation, the question arises that is it really a profitable deal or is there some cunning hidden behind it? Let us know what is no cost EMI, how it works, what are its benefits and loss, and is it the right choice for shopping in festivals?
What is no cost EMI?
No cost EMI means that you can buy a product and you can pay its price into a few months installments without any interest. That is, if the price of a goods is 30000 rupees, then you can repay it in 6 months in the installment of 5000 rupees every month.
It feels very good to hear, but its real mathematics is a bit complicated. Many times vendors adjust the interest amount in advance instead of discounts. That is, the discount you could not get and thus you feel that you are paying without interest.
Benefits when you take wise EMI
The biggest advantage of no cost EMI is that you can buy expensive things without spoiling your budget. It can be difficult to pay 50000 rupees simultaneously, but if the same amount is divided into 10 installments of 5000 rupees, then the expenditure becomes a little easier. When the expenditure is more than before in festivals, then this EMI model does not put much burden on your pocket. Especially when you are buying something necessary like washing machine, fridge or laptop.
Disadvantages when things appear on ‘no cost’ ‘Hidden Cost’
Every good thing has a price and no cost EMI also has some shortcomings. Many times it has processing fees, device charge or other hidden charge, which you have to pay. Apart from taking no cost EMI in some offers, there is no direct discount or cashback, which is available on full payment. And the most important thing if you do not pay EMI on time, then your credit score can also be spoiled, which can make it difficult to take a loan in future.
When is No Cost EMI right for you?
No Cost EMI can be a good option for you when you do not have money to make full payment immediately, but you can definitely pay EMI on time. Apart from this, when there is no specific cashback or discount on the product, no cost EMI can be a better option. Also, if you want to buy many things together in the festive season, then it can be easy to manage the expenditure from EMI.