No-Cost EMI: India’s biggest annual festival, Diwali is on the corner. People have started shopping for the major festival. Presently, there are several payment options available to the customers for making transactions while shopping for them. No-Cost EMI is one of them, this payment mode is now becoming the first preference of consumers in the market. If you are also planning to buy a new iPhone this Diwali with no-cost EMI option. Check out the pros and cons of making purchases with the No-cost EMI option. Check the full story to get into more detail.
No Cost EMI
No-cost EMI offers convenience to the consumers by allowing them to buy high value products without paying any extra amount to the lender. Payment mode is becoming a new trend among consumers.
No Cost EMI: Advantages
No Interest Payable
No cost EMI scheme allows consumers to buy any product without paying any interest charges. It is primarily more beneficial for high principal sum purchases from 9 to 12 months which can even extend to 2-3 years.
No Hidden Charges
Most of the lenders offer No-cost EMI schemes with no hidden charges applied on the consumers, which makes it a trustworthy and convenient option to buy any needful product.
Improved Financial Flexibility
As the scheme charges no extra interest rates on the price of the product. Customers can manage their finances by spreading payments over a duration of time as per their convenience.
Better Lifestyle
As the No-cost EMI option allows consumers to buy any product of their choice. They can get any product without putting any pressure on their monthly budget. They can really enhance their standard of living if they use this payment option in a positive way.
No-Cost EMI: Disadvantages
Extra Charges
No-cost EMIs often come with a bunch of extra charges. These charges include extra amounts which need to be paid by customers in the form of administrative charges, processing fees and other.
Price Markup
This trend is often seen that retailers increase the product’s base price to be compensated for no interest charges on the No-cost EMI option by the consumers.
Prepayment Penalties
Some of the EMIss may come with a prepayment penalties and charges, in case if consumers plan to repay the full amount before the pre-opted tenure which destroys the basic essence of opting No-cost EMI.
Conclusion
Here, I have explained the advantages and disadvantages of opting for the No-cost EMI option in a detailed manner. Now, it solely depends upon you whether it is beneficial for you to avail this scheme or not. You are advised to not purchase the products which you don’t need the most, adopting this tip you can fetch the maximum benefits of No-cost EMI option in a positive manner.
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