The festive season is about to begin. Retailers are preparing to give attractive offers and other types of discounts. Shopping is an important part of festivals, for which no-cost EMI has emerged as a popular option. No-cost EMI is especially useful during the festive season, when people want to renovate homes or buy high-value items like electronics and furniture. This facility gives customers the option of making big purchases by dividing the total cost of a product into easy installments for a fixed period without paying additional interest. If you also want to take advantage of no-cost EMI during festivals, then you must know some things.
Maximum 24 months grace period for payment
No-cost EMI or zero-interest EMI is a repayment facility. It divides the amount spent on your big purchase into several interest-free installments for a period of up to 24 months.
If you want to buy a smartphone for Rs 48,000 but do not want to make the full payment at once, then you can choose the 12-month no-cost EMI option. That is, you can buy a smartphone at a monthly EMI of Rs 4,000 without any interest.
Annual interest remains applicable
When you opt for no-cost EMI, no additional interest is charged on the installment payment. However, the interest is not waived by the seller, but is offered as a discount. Apart from this, an annual interest rate is applicable from the lender, which is borne by the seller. Therefore, despite being interest-free, there are other expenses and terms, which are important to know about while opting for no-cost EMI.
