Key Points to Consider Before Choosing No-Cost EMI

Outlook Money

Key Things to Know About No-Cost EMI

Buyers can divide purchases into interest-free monthly installments with a no-cost EMI. Its crucial to comprehend the process before choosing it.

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Eligible Products

These EMIs are mainly available on electronics, appliances, and high-value items, but not all purchases are eligible.

Collaboration with Financial Institutions

Banks and other financial organizations collaborate with shops to offer free EMI choices. Each partner has different terms, qualifications, and tenure.

Additional Costs to Consider

Interest may be waived, but processing fees, down payments, or other administrative charges can still apply.

Cost

Effect on Your Credit Score

Using No-Cost EMI has minimal impact on your credit score, but missed or delayed payments can harm your credit history.

Credit Score

Down Payment Requirements

A down payment may still be needed to reduce the financed amount, which affects the total purchase cost.

Discounts and Cashback

No-Cost EMIs may be offered alongside discounts or cashback by retailers, but the eligibility and payment methods can affect these offer

Prepayment Rules

Prepaying a No-Cost EMI may attract fees or penalties. Review the terms carefully before making early payments.

Other Financing Options

Compare free EMI options to credit cards or loans. Even with interest rates, there are times when other financing solutions might be more cost-effective overall.

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