No Cost EMI – you must have come across this term and most of the time, people have complained that they didn’t understand it well enough to go for the deal. Amazon and Flipkart are wooing their consumers with this deal and if you are looking to pay EMI online and make this purchase, then you are at the right place. Everyone wants and wishes to make the best out of such offers, but only a few know how to reap the benefits.
No one wants to come out and talk about the secrets behind the no cost EMI and how tactfully one has to deal with it. Some call it a ‘marketing gimmick’ while others say that it helps save you money. The tussle between these two groups can go on and on, but who knows that this ‘marketing gimmick’ might actually help you to pay your EMI online.
So, let’s find out a few things about this No Cost EMI. Yes, not everyone will be ready to share the details with you, as not everyone is aware of what it’s all about. In this article you will get all the details that will help you understand it from start to finish.
No Cost Doesn’t Mean No Interest
Many people think that no cost means no interest to pay. Well, who said that? When you opt for No Cost EMI, then you surely do have to pay the amount, but wait there is also an additional interest that’s charged for about 15% or so. Why?
This is because the RBI has prohibited bank lenders and card issuers that no one can offer 0% interest on loans or EMIs. So, people are paying the interest. But there is a difference in this scheme. so, comes in point 2.
Purchase it At The Selling Price
The buyer will be paying the actual selling price of the product without any discounts. The complete selling price of the product is paid added together in installments and this mounts up to the interest amount.
For example, if you purchase a cell phone worth Rs. 20,000/- with no-cost EMI, then you might have to pay the full amount within the stipulated EMI pay scheme that you choose. However, when you buy the product upfront with cash payment, then you might get a discount of Rs. 2,500/- from the retailer. The 2,500 rupees is the interest of the EMI, when you opt for No Cost EMI.
So, as a consumer you might be thinking how to benefit from this scheme when you are making a purchase and decide to pay EMI online, yet reap the benefits. Well, there is always a solution and a way out, which will help you understand how to salvage yourself and get the maximum benefit out of it.
Check the Terms and Conditions
Yes, you never know what’s coming up for you. So, make sure before you check out have a look at the Terms & Conditions and then make the final decision. You might get lucky or it might be a costly mistake. Who knows? So, take a look before you leap.
Retailers Offer Cash Backs or Upfront Discounts
Get ready to pay EMI online, with No Cost scheme, if the retailer is offering an upfront discount or cash backs. However, have a look and make sure it’s equivalent or more than your interest amount.
Purchase Expensive Products
Did you know consumers usually get expensive products with No Cost EMIs? This is because the expensive products are the hardest to sell, which makes retailers offer such a scheme that would look like you don’t have to pay much money or the interest is reduced – here comes the term ‘no-cost’.
When one sees a product on display with the tagline –Available at ‘No Cost EMI’ – then instantly the product goes to the cart and the sale is made.
The end-result – The consumer gets the expensive product at the selling price itself without shelling out excessive finances as EMI interests (yes, without discounts, it can add up to a lot). While, the retailer also makes a profitable sale at the end of the day. It’s a win-win situation for both.
Credit Card is a Must
Yes, you need to be in-charge of your credit card and only then will you be able to avail the scheme. You need to have the credit card from the bank which offers this scheme and only then can you make the purchases which fall under the No Cost EMI offer.
Your Bank Does Charge Interest And You Need to Pay Taxes
Yes the bank might be charging you interest, but in case you are lucky enough to grab discounts, then it would not be much of a worry. The retailers seldom do have offers, cash backs and different other kinds of discounts to make you happy.
So, the situation is not something that bad. You might just give it a try, especially if you are seeking to buy expensive products online. You will surely get it cheaper considering you pay only the selling price and nothing more!
Always Opt for Cash Purchases
If you want to grab the discounts, then please opt for card purchases and don’t go in for cash. Payments in cash will never get you discounts and if they do, it will not be good enough to balance the interest rate that you will need to pay. So, go for the credit card and not the cash!
If you are seeking to buy a popular product and getting a significant discount thanks to this scheme, then you are on the right track.