Real Facts About No-Cost EMI: Can You Actually Obtain No-Cost EMI At Zero-Cost?

The festive season is coming in India and major companies are ready to offer discounts and no-cost EMI (equated monthly installment) schemes to boost the demands this fiscal. Mostly, electronic goods and automobile companies offer these discounts. So, before that buyers should know about real facts about the No-Cost EMI.

No-cost EMI means the consumers will not be required to pay any additional interest rate or cost while purchasing a particular product availing of the EMI offer. Only the said monthly installment will have to be paid, which will be the price of the product, divided by the EMIs. Here, you can select different tenures for the EMI payment, which can be from 3 months to 2 years.

Additionally, many banks or NBFCs can offer zero-cost EMI options, like zero-down payment plans. Under this plan, the buyer will not have to pay the upfront amount immediately, and the payment can be made in monthly installments. But, some of the banks, do not offer this, where you need to pay a minimum amount as a down payment. The rest of the bill can be paid in monthly installments.

However, the real facts behind the no-cost EMI options are, you might need to pay the bank or the NBFC a processing fee or processing charge for the no-cost EMI, along with the actual bill of the product you have purchased. So, even if you are not required to pay the interest, the processing fee will be the extra cost for you, in addition to the product bill. But, if you are not taking up the EMI option, and pay the bill at one time via card/cash/UP etc., the additional will not have to be paid. So, get a clue about the terms of the EMI before taking it up.

Last year, Indian citizens were still struggling with the Covid-Pandemic, and demand-momentum was hampered significantly. However, this year with additional offers and an improved economic scenario, demands are expected to grow. EMI options and the festive offers will aid in that.