No Cost EMI is one of the popular options that people consider when buying expensive items or something that is out of their budget. When you use this option, you can buy essential items in monthly installments without paying any extra interest. But is it really a good deal? Let’s understand what No Cost EMI is, how it works, and whether it is a good choice or not. Let’s also know about some other options that will help you make the right choice.

What is No Cost EMI?

Simply put, No Cost EMI means that you can pay in monthly installments without incurring any additional interest when you buy something. In the No Cost EMI option, you can pay the entire price of the product as it is within a few months. This is different from the regular EMI where you have to pay the price of the product plus some interest.

How does No Cost EMI work?

When you opt for No Cost EMI, you purchase 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 installments. For example, if the product costs ₹60,000 and the EMI period is 6 months, you will have to pay ₹10,000 every month. Here, a major No Cost EMI benefit is that you do not pay any extra money on interest. However, there may be a small processing fee.

Pros and Cons of No Cost EMI

Pros;

-Breaks up large payments into smaller ones
No extra interest
Offers multiple online stores
Helps you avoid using savings for your purchases
Makes it easier to buy expensive items

Cons;

There may be hidden fees like processing charges
-Available only for certain products
-You may miss out on discounts and cashback
-Credit card required
-Missing payment installments can damage your credit score

When should you consider No Cost EMI?

Here are some situations where using No Cost EMI can be helpful for you:

For large purchases: When you need to buy something expensive like a TV or laptop, you don’t have to pay all the money upfront.

If there’s no great offer: If you’re not getting discounts or cashback, No Cost EMI can help you increase your spending.

If you’re confident about your repayments: Only opt for No Cost EMI if you know you can make the monthly payments without any hassle.

To manage your cash flow: If you prefer to pay installments that fit your monthly budget rather than paying the full amount, opt for No Cost EMI.