The ‘No Cost EMI’ scheme is emerging as a preferred approach for buyers to acquire big-ticket items that are otherwise unaffordable to them.
Flipkart first introduced nocost EMI finance plan, which was later on joined by various other eCommerce websites like Amazon.com. This finance system enables purchasers to acquire high-value things online with EMIs, thereby reducing the problem of paying a massive amount upfront.
The initial thing that comes to our mind when we listen to the expression ‘nocost EMI’ is that it’s interest-free. No price EMIs include passion payments. This post solutions this concern and also talks regarding whatever you need to recognize about no expense EMI.
No cost EMI is a finance plan supplied by sellers as well as stores by which you pay just the product rate in EMIs spread over your payment timeline.
This money plan works in 2 ways:
This is one of the most typical means sellers offer no cost EMI. The rate of interest amount suitable is used as a discount rate on the product.
Assume that you want to buy a phone that costs ₹30,000. In a 3-month EMI strategy, if the passion rate applied is 15%, you are qualified to pay a rate of interest quantity of 4,500. In no cost EMI scheme, you have to do away with the discount and pay the initial rate of the mobile phone in EMIs. If you select to buy the phone with a no price EMI scheme, you have to pay the full price of 30,000, which is split right into EMIs.
We’ll take one more instance to understand this approach.
Allow’s claim you intend to get a product that costs 15,000. In a no cost EMI scheme, you obtain this item at 17,250. In this case, the interest (15%) quantity of 2,250 is included in the item pricethat is payable in EMIs spread out throughout a particular tenure. Sometimes, the interest component is covered as processing charges.