Demystifying No-Cost EMIs: 10 things to know before you opt for it
Shopping for your favourite gadgets or electronic appliances was never so easy as it is today. Thanks to the No-Cost EMI (Equated Monthly Instalment) option, you do not need to pay a huge amount upfront as you can break the big amount into small EMIs and buy your favourite mobile phone, TV or any other things you need even when funds are not immediately available.
No-cost EMI has emerged as a popular and enticing option for consumers. As the name suggests, these payment plans appear to come without any additional costs, offering a convenient way for individuals to make high-value purchases. However, it’s crucial to understand the mechanics and nuances of No-Cost EMIs to make informed financial decisions.
A No-Cost EMI allows consumers to spread the cost of a purchase over several months without incurring any interest charges. It’s, however, important to note that while interest is not directly charged, there might be other fees or adjustments involved in the overall cost calculation.
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Contrary to the term ‘No-Cost’, these EMIs may involve hidden charges. While interest might be waived, processing fees, down payment requirements, and other administrative charges could apply. Consumers must carefully read the terms and conditions to uncover any potential additional costs.
No-Cost EMIs are generally applicable to specific products or through select retailers. Commonly available for consumer electronics, appliances, and high-value items, these EMIs may not be universally applicable across all types of purchases.
Retailers offering No-Cost EMIs often collaborate with financial institutions to provide this service. The terms of the EMI, including
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