What Is The Secret? No-Cost EMI
No-Cost EMI: When Launching Valuable Products in The Market Or Announcing A Special Offer, Companies Announce The Availability Of No-Cost EMI Facility On Those Products. This Is The Most Heard Offer In Recent Times. Attracting Customers At The Same Level. But, Does This Offer Really Come Without Any Extra Charges Or Burdens? What Is The Secret? Everyone Must Know What Is Zero Cost?
No-Cost EMI: No-cost EMI is The Buzz Word In The Market Right Now. No-cost EMI Has Become A Popular Facility For Purchasing Valuable, High-priced Items. Any Desired Purchase Can Be Availed Through This Facility Without Paying A Lump Sum. At Present, This no-cost EMI Offer Is Being Offered Mostly On High-cost Items Like Refrigerators, TVs, Washing Machines And Mobile Phones. In The Same Way Customers Are Also Taking Them Home By Paying A Small Amount. Although There Are Many Benefits With No-cost EMI, Everyone Should Know The Full Details About It. Is The Offer Really Zero Cost? One Should Think About How They Are Giving Away Goods Worth Thousands Of Rupees For Months Without Interest. No-cost EMI is Available To Customers In Various Ways. Generally, Customers Are Offered Discounts And Rebates On The Purchase Of Any Product With Regular EMI. Assume The Same No-Cost EMI But The Discounts And Rebates On it Are Not Given To The Customers. Then The Full Price Of The Item Has To Be Paid. It Should Be Thought That It Will Cost More. How No-Cost EMI Works Let Us Take A Look At How Interest And Other Charges Are Charged.
What is No-cost EMI?
Let Us Assume That Any Commodity From The Market Fetches Rs.3,500 After 10 Percent Subsidy. If The Same Item is Purchased Under No Cost EMI, The Benefits On It Will Not Be Availed. That Means You Will Have To Pay Its Total Cost Of Around Rs.4000. Also.. Suppose The Price Of An Item is Rs.10,000 And It Is Taken On No Cost EMI Method. Then If You Think That The Interest is Rs.1000, You Will Be Told The Price Of The Item as Rs.11,000. You Have To Pay Rs.11 Thousand In Installments. On The Other Hand, Companies Charge Interest In The Form Of Processing Fees.
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When is It Better To Go Through No-Cost EMI?
This No-cost EMI is Beneficial When Purchasing Any Item With A Higher Rate. This No-cost EMI Facility Can Be Availed When One Cannot Afford To Pay The Entire Price Of The Item At Once. Even if The Interest Is Added In The Form Of Charges or in The Total Value Of The Item, It May Not Feel Burdensome As It Can Be Paid Every Month. Some Companies Even Give A Discount On The Price Of The Item If You Avail The No-cost EMI Facility Through Credit Card. It Is Better To Choose No-cost EMI After Knowing How It Will Benefit Us.
What is The Difference Between Regular EMI And No-cost EMI?
There Are Two Types of EMI Facilities When You Intend To Purchase Any Item. One is Regular Emi And Second Is No-cost EMI. When We Take A Loan Through Regular EMI And Buy The Item We Want, The Selling Companies Show The Interest Separately in Installments Every Month. The Same Is Not The Case With No-cost EMI. Interest is Added To The Price Of The Item Or Charged in The Form Of Processing Fees To Impress The Customer. However, There Is no Chance Of Loss For The Company. Somehow They Collect What They Are Supposed To.
Are There Any Additional Charges?
Nowadays Many People Are Taking No Cost EMI Option While Buying Any Item. No Cost Means They Feel That They Are Owning An Expensive Item Like Everyone Else Without Any Additional Burden. But Before Availing No-cost Emi, You Need To Know What The Charges Are. Know What Prepayment Charges And Late Fees Are. Usually They Show The Total Price Of The Item And Collect Interest In The Form Of Charges.
How Does It Affect Credit Score?
Many People Are Opting For No Cost EIM As They Think That There Will Be No Additional Charges Or Burdens. Although There Are Some Benefits, There Are Also Negative Points. Apart From Losing Out On Concessions, Non-payment Of No-cost EMI On Time Can Also Have A Negative Impact On Your Credit Score. That’s Why You Have To Think Twice While Choosing The EMI Option Whether You Have The Ability To Pay On Time Or Not. EMI Option Should Be Chosen When You Are Sure Of Paying On Time Every Month.
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What is The Meaning of No Cost EMI?
The No Cost EMI facility Helps You Pay Your Monthly EMIs at No Extra Cost . This Means, While Repaying The Cost Of Your Purchase, You Will Be Required To Pay Back The Actual Cost Of The Product Without Any Interest.
What is the difference between EMI and No Cost EMI?
When You Buy A Product on EMI, You Will Have To Pay Interest and Processing Fees. In No Cost EMI, you Only Have To Pay The Cost of The Product. Customers Do Not Have To Deposit Anything in The Form Of Interest And Processing Fee .