No Cost EMI is one of the popular ways people consider when buying expensive items or something that’s out of their budget. When you avail this option, you can buy the item in monthly installments without paying any extra interest.
But is it really a good deal? In this brief blog, let’s understand What is No Cost EMI, how it works, and whether it is a good choice or not. Here, we will also talk about some other options to help you make the right choice.
What is No Cost EMI?
In simple words, No Cost EMI means you can buy something and pay for it in monthly installments without being charged extra interest. With the No Cost EMI option, the total price of the product stays the same, but you get to pay it off over a few months. Keep in mind that it is different from regular EMI where you have to pay both the price of the product and some interest.
How Does No Cost EMI Work?
Wondering how does No Cost EMI work? Here’s how:
When you choose No Cost EMI, you buy a product using a credit card or a finance option like CASHe.
Now, what happens is that the price of the product is divided into monthly instalments. For example, if the product costs ₹60,000 and the EMI period is 6 months, you would have to pay ₹10,000 each month.
Here, one of the major No Cost EMI benefits is that you do not pay any extra money in interest. However, there may be a small processing fee.
Pros & Cons of No Cost EMI
Now, let’s look at the advantages and disadvantages of No Cost EMI:
| Pros | Cons |
|---|---|
| Breaks down big payments into smaller ones | They may be hidden fees like processing charges. |
| No extra interest | Available on limited products |
| Offered by many online stores | With this, you may miss out on discounts and cashback |
| Helps you avoid using savings for your purchases | Requires a credit card or a finance option |
| Makes it easy to buy expensive items | Missing payments can damage your credit score |
When Should You Consider No Cost EMI?
Here are certain situations where using No Cost EMI can be helpful to you:
- For big purchases: When you need to buy something expensive like a TV or a laptop but do not want to pay all the money upfront.
- When there is no better offer: If you are not getting discounts or cashback, No Cost EMI can help you spread the cost.
- If you are sure about repayments: Only choose No Cost EMI if you know you can make the monthly payments without any trouble.
- To manage your cash flow: Choose No Cost EMI if paying in instalments fits your monthly budget better than paying the full amount.
Also Read : How to Reduce Your Personal Loan EMI
Alternatives to No Cost EMI
If you are someone who does not want to use No Cost EMI, then here are a few other options for you:
- Full Payment Discounts: Some purchases offer discounts if you pay the full amount upfront, which could be a better deal than No Cost EMI.
- Credit Card EMIs: You can convert your credit card purchases into regular EMIs, but these usually come with interest.
- Personal Loans: For bigger purchases, instant personal loans with lenders like CASHe can sometimes offer lower interest rates than credit card EMIs.
Conclusion
There is no doubt that No Cost EMI can help you buy expensive things without paying extra interest. But make sure you always check for hidden fees. If you need quick cash for your purchase, download the CASHe app. CASHe offers instant personal loans of up to ₹4 lakh and lets you borrow money easily and quickly.
