How much do you pay for No Cost EMI? Is this facility really free, know all the details about it

New Delhi, Business Desk. Often while shopping in a big store, mall or online store, you will see or hear about No-cost EMI. Do you know what is this? Most of the people who are aware of it think that this feature comes for free as it has the word ‘no cost’ attached to it. But the truth is that nothing is available for free in the business world. No-cost EMI also comes at a cost.

During the festive season, many companies and online retailers come up with attractive offers, including no-cost EMI plans. Many people wait for the festive season sales to buy home appliances, new vehicles, bikes and gadgets etc. The biggest advantage of these is the discount and no cost EMI, but sometimes these offers prove to be harmful instead of benefiting.

What is No Cost EMI

The no-cost EMI offer allows consumers to buy the product in installments without paying additional interest or charges. No-cost EMI scheme is often opted by people to buy new gadgets or home appliances. But you should be aware of some aspects of this plan before making a purchase.

When you opt for No-Cost EMI or Zero-Cost EMI option to make a purchase, it means that you will pay for that product in monthly installments, and that too without any interest or charges. That is, you will only pay the actual cost divided into EMIs, but is that really the case?

No cost EMI may vary depending on the bank

Many banks offer no-cost EMI facility in different options. Some banks offer zero downpayment facility on their products. In this you do not need to make any payment and you can easily pay the money in monthly installments. On the other hand, some banks charge a minimum amount as downpayment and the balance amount is paid in EMIs.

Before taking no-cost EMI…

• You can choose from different repayment cycles as per your requirement before availing the no-cost EMI. It can range from 3 months to 24 months.
• No-cost EMI carries no interest on the principal amount, it does not mean that you will only pay the actual cost of the product.
• Many banks charge a processing fee for no-cost EMIs. Actually, sometimes this processing fee is collected in a way instead of interest.
• While opting for no-cost EMI, you do not get the discount offered on the product that you could have availed.
• Please read the terms and conditions carefully before opting for no-cost EMI.