The Corona crisis and lockdowns have affected people’s earnings and troubled them with money. People facing cash crunch are increasingly using credit cards. At the same time, e-commerce companies are offering no-cost EMIs to boost their sales. People benefit from this offer. They do not have to pay together to buy goods and can cover all their expenses.
What is No-Cost EMI?
When the customer is buying by EMI i.e. installment, he has to do the goods amount up to a period at a specified time. At the same time, there is interest on it. This interest has to be paid in lieu of availing EMI facility. But in no-cost EMI, you can only pay the price of the purchased goods in the form of EMI. There is no interest on it.
How does no-cost EMI work?
It just hides the advantages and disadvantages and people are not even aware of it. No-cost EMI means you don’t have to pay any interest on the loan. But your bank takes back the discount given as interest.
You pay extra money
If you think you don’t want to buy goods at no-cost EMI then this is a wrong idea. Whether it is a normal EMI or a no-cost EMI, you always pay more.