How zero-cost EMI is revolutionizing Indian shopping habits
What's the story
Let's face it: buying that shiny new gadget or stylish piece of furniture can burn a hole in your pocket.
But what if we told you there's a way to get your dream items without breaking the bank upfront?
Enter zero-cost EMI - a game-changing shopping strategy for Indian consumers! Imagine paying for that big-ticket item in easy monthly installments, minus any interest.
Sounds like a dream come true, right? Well, it's real, and here's everything you need to know.
Mechanics
How no-cost EMI works
In a No-Cost EMI, the interest that would be levied on your EMIs is either offered as an upfront discount by the seller or is borne by the financier.
For example, if you purchase a smartphone costing ₹30,000 on a six-month plan at 15% interest, instead of paying additional charges, you will pay ₹5,000 every month for six months.
Criteria
Eligibility and conditions
Free EMI options might not be available to everyone. Your eligibility largely hinges on your credit score and history.
Plus, these schemes are typically offered on credit cards from particular banks or via digital payment platforms that have partnered with retailers.
Make sure to read the fine print, as some offers may involve processing fees or necessitate down payments.
Advantages
Benefits of choosing no-cost EMIs
Free EMIs make buying expensive stuff easier on your wallet by letting you pay over several months with no extra charges.
This is especially handy during festive seasons or sales when you're shelling out for big-ticket items.
And, it allows you to manage your monthly budget better without giving up on your lifestyle aspirations.
Caution
Things to watch out for
While zero-cost EMIs provide the benefit of convenience and affordability, one should exercise caution to avoid overspending.
Since the immediate financial burden is alleviated, one may be tempted to purchase non-essential items or those exceeding their budget.
You should always evaluate your financial stability before choosing such schemes, and ensure that your monthly budgets comfortably support these additional expenses.