No-cost EMIs are options that allow customers to purchase goods or items either online or offline. The customer gets the help of the financiers as they pay the company in advance. The customer must pay the amount in installments to the financiers at an interest-free rate.
It’s the real difference between regular EMIs and no-cost EMIs. In the regular EMI, a person pays a fixed amount each month at a fixed interest rate over the loan year, which allows the customer relief in their payment as they don’t need to break their bank account to make a purchase.
What is the No-Cost EMI?
The rise of the no-cost EMI is a prospect through which a customer can buy multiple items without paying interest like a normal EMI. For that, one can take the help of financiers who can pay the bill on your behalf, and a person can break the price into a series of regular installments, which will be paid like normal EMIs.
The only difference in this segment will be that it will not allow a person to get the item now, and the purchase can be made in an interest-free period over several months. Here, a person can consult with an agent from a DSA app in India who can guide the right credit card based on your purchase history.
Example of Using No-Cost EMIs
The no-cost EMI works as same as the regular EMIs, and it’s divided through the length of the repayment tenure. For example, a person who is deciding to buy a laptop can take advantage of the no-cost EMI from the seller and they can get the product at the same cost along with the item delivered to that person at a stipulated date.
If we consider the laptop’s price Rs 1 lakh, then if we divide that amount over 12 months, we can pay back that amount as an EMI for 12 months at Rs. 8,333.33 and easily cover the cost without breaking the bank or crossing the budget.
The Prospect of Growth in the No-Cost EMIs in India
When we are considering the prospect of no-cost EMI growth in this country then, we must state that there is a 220% increase in the total volume of the EMIs that customers have taken in 2021.
It is now one of the most preferred options as customers benefit from paying the amount at no cost, which helps the buyer get all the products they need at an affordable rate and also monthly, which one can cover from their budget.
Benefits of No-Cost EMI
One of the benefits of the no-cost EMI is that it’s easy on the customers’ wallets, and they can take control of the budget. This option allows people to get their essential needs met, and it benefits both the consumer and the brands as it allows them to take control of the budget.
It also allows the customers to choose a repayment tenure and an amount they feel comfortable paying when using the fund from their salary or monthly income.
Finally, the promise of no extra amount to be paid allures customers to take out a loan and purchase a product with the help of an EMI.
How No-Cost EMI Eats the Discount?
Everything is not fair and glorious when it comes to the no-cost EMIs. For example, in some cases, the only offer of no-cost EMIs comes with the set tenure that the financiers have selected. Apart from that one needs to pay an interest on their EMI once they customize their individual EMI plan.
Here, one can get help from the loan agency, and through its work and agents, one can get an idea of which financier to choose while opting for a no-cost EMI purchase.
These are some of the benefits and cons of the no-cost EMI, and through that, one can get their consumer needs met through the use of this financial tool.