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).
Where can I use the Insta EMI Card
You can use the Insta EMI Card at over 1.2 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 3 to 24 months
- Card loan limit of up to Rs. 3 lakh
- Shop for 1 million+ products across 3,000+ 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.
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.
By carefully considering these aspects, you can make an informed decision and use the No Cost EMI option to your advantage while managing your finances effectively.
