Keep these things in mind before buying goods on no-cost EMI
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.