No Cost EMI options have grown rapidly over the last few years, thus proving the popularity and convenience offered by this type of financing. By paying through EMIs, you split up your purchase cost over a long tenure, making it easier for you to manage your monthly budget. Today, retailers, and e-commerce websites offer two types of EMI schemes:
Regular EMIs: In a regular EMI scheme, you make a down payment, your financier pays the remaining product amount, and you repay the borrowed sum over the tenure at a fixed interest rate.
Interest-free EMIs: Under this EMI scheme, you shop via certain retailers online or offline, your financier pays the product amount, and you repay the borrowed sum over the tenure without any interest.
What is No Cost EMI?
No Cost EMI means a type of easy EMI facility where you can convert the cost of your products into EMIs and pay nothing over the agreed purchase price. With this EMI scheme, you incur no additional monthly EMI charges. No Cost EMI is sometimes also referred to as zero cost EMI or interest-free EMI. You can avail of No Cost EMIs at various online and offline stores using the Insta EMI Card.
How does No Cost EMI work
To calculate your monthly EMIs under the No Cost EMI scheme, you can simply divide your purchase price with the length of the repayment tenure.
For instance, you visit a partner store near you and decide to buy a television on No Cost EMIs. The amount you pay post discounts and processing charges is Rs. 1 lakh. To pay this amount you opt for a repayment tenure of 12 months. With this tenure and product cost, your monthly EMI will be Rs. 8,333.33 (i.e., Rs. 1,00,000/ 12 months).
What to look out for while choosing No Cost EMIs
Opting for a No Cost EMI option can be enticing, as it allows you to make big-ticket purchases without immediate financial strain. However, it is crucial to consider certain factors before availing of this option:
- Budget assessment: Assess your financial situation and ensure that the monthly EMI payments fit comfortably within your budget without compromising other essential expenses.
- Interest-free period: Confirm the interest-free period of the EMI option. Beyond this period, regular interest rates may apply, impacting the overall cost.
- Product value: Evaluate if the No Cost EMI option is available on the exact product you want to purchase. Some offers might apply only to select items.
- Credit score: Verify if opting for the EMI will affect your credit score, as it involves a financial commitment.
- Prepayment flexibility: Check if the EMI scheme allows for prepayment without penalties, giving you the option to clear the debt ahead of time.
Pros and Cons of No Cost EMI
|1. Affordable monthly payments: No Cost EMI allows consumers to break down the cost of a product into smaller, more manageable monthly instalments.
|1. Limited product selection: Not all products or retailers
offer No Cost EMI, limiting choices for buyers.
|2. Interest-free: As the name suggests, there is no extra interest charged, making it a cost-effective way to make purchases.
|2. Credit checks and eligibility: Eligibility for No Cost EMI may require a good credit score and may involve credit checks.
|3. Budget-friendly: No Cost EMI helps consumers stay within their budget by spreading payments over several months.
|3. Processing fees: Some retailers or financing companies may charge processing fees, which can add to the cost.
|4. No need for a credit card: Unlike credit cards, No Cost EMI does not require a credit card, making it accessible to those without credit cards.
|4. Complex terms and conditions: The terms and conditions for No Cost EMI can be complex, and consumers may not fully understand them.
|5. Convenience: It is a convenient way to make high-value purchases without the need for a lump sum payment.
|5. Limited retailers: No Cost EMI may only be available at specific retailers, limiting shopping options.
No Cost EMI can be a beneficial option for individuals looking to make big-ticket purchases while managing their finances. However, it's essential to be aware of the terms and conditions and choose this option wisely, considering the product, retailer, and personal financial situation.
Difference between EMI and No Cost EMI
|No Cost EMI
|EMI stands for Equated Monthly Instalment, which is a payment plan that divides the total cost of a purchase into smaller, equal monthly payments.
|No Cost EMI is a zero-interest instalment plan that allows you to pay for a product in monthly instalments without paying any extra interest or fees.
|Interest charges are applied to the EMI, making it a more expensive option in the long run.
|The price of the purchase is divided into equal monthly instalments, and the total cost remains the same as the upfront payment.
|Banks or credit card companies usually offer EMI options.
|No Cost EMI is an exclusive offer and is offered by brands or retailers, and NBFCs like Bajaj Finserv.
Where can I use the Insta EMI Card
You can use the Insta EMI Card at over 1.5 lakh+ partner stores across 4,000+ cities to buy 1 million+ products. Furthermore, the Insta EMI Card also offers you a card loan limit of up to Rs. 3 lakh.
Exclusive features of the Insta EMI Card:
- A No Cost EMI where you pay nothing over the purchase price
- Flexible EMI repayment tenure of 1 to 60 months
- Card loan limit of up to Rs. 3 lakh
- Shop for 1 million+ products across 4,000+ cities through the EMI Network
- No physical documentation required
Eligibility criteria for the Insta EMI Card:
- Age: 21 to 65 years
- Nationality: Indian
- Income: You must have a regular source of income
- Credit score: You should have a CIBIL Score above 720
Check your pre-approved offer and get access to exclusive No Cost EMI deals.
How to avail No Cost EMI using Bajaj Finserv EMI Network Card?
Bajaj Finserv EMI Network Card is a great way to make purchases without burning a hole in your pocket. One of the most exciting features of this card is the No Cost EMI option. If you want to avail of this feature, here are some simple steps to follow:
- Check if the store you want to purchase from is a partner of Bajaj Finserv. You can do this by visiting the official website of Bajaj Finserv and using the store locator.
- Choose the product you want to buy and calculate the total amount you need to pay.
- At the payment counter, inform the cashier that you want to avail of the No Cost EMI option through your Bajaj Finserv EMI Network Card.
- Swipe your card at the payment counter and select your preferred EMI tenure.
- The amount will be deducted from your card, but you will not be required to pay any interest or additional charges.
The Insta EMI Card is a fantastic financing option for anyone who wants to make purchases without breaking the bank. With easy-to-apply-for and fast approval procedures, the Insta EMI card puts the power of affordable purchasing right into your hands. It allows you to break down purchases into smaller, more manageable payments, and with the zero down payment options available, you can make the most of your card with minimum fuss. Also, the card comes with a wide range of features such as loyalty reward points and discounts on a range of exciting products. In conclusion, the Insta EMI Card is one of the most valuable financial products available on the market today.