As the much-awaited sale events like Amazon’s Great indian Festival and Flipkart’s Big Billion Days are just around the corner (starting september 23), online shopping enthusiasts are gearing up to grab some great deals. One of the most tempting offers during these sales is the No Cost EMI option. But before you jump in, here are five crucial things you should know about No Cost EMI to make an informed decision and avoid any hidden pitfalls.
1. No Cost EMI Isn’t Actually “Free”
While it sounds like you’re paying nothing extra, the reality is a bit different. With No Cost EMI, the price of the product is divided into equal monthly installments, but interest charges are often absorbed by the seller or lender. The catch? You’re still paying the same final price, and sometimes the cost is subtly built into the original price, meaning you’re paying a bit more upfront. Always compare prices before choosing this option!
2. EMI Plans Can Be for Limited Tenure
Many consumers assume that they can stretch the repayment over a long period, but in most No Cost EMI offers, the tenure is quite short. Typically, it could range from 3 to 6 months. If you're opting for longer repayment terms, be cautious about the hidden charges or potential extra fees that could be levied.
3. Eligibility Criteria May Vary
Not everyone qualifies for No Cost EMI. Depending on the product, your credit score, and your past transactions with the platform or the financial partner, you may or may not be eligible. Check the eligibility requirements before adding that dream gadget to your cart.
4. Hidden Processing Fees Could Be a Dealbreaker
Some online platforms and financial institutions impose processing fees for the No Cost EMI option. This fee could range from a small percentage of the product price to a flat fee, which can slightly reduce the appeal of the No Cost EMI offer. Always verify the fine print before choosing this option.
5. Defaulting Could Hurt Your Credit Score
Like any other loan or installment plan, failing to make timely payments on a No Cost EMI can damage your credit score. This can affect your future loan or credit card applications. So, before opting for No Cost EMI, make sure you're comfortable with the repayment schedule and can meet your financial obligations.
Conclusion: Weigh the Pros and Cons Carefully
No Cost EMI can be a convenient way to make big-ticket purchases during sales, but it’s important to do your homework. Understanding how it works, knowing the hidden fees, and making sure you can repay on time will help you make the most of these offers without regretting your decision later. Happy shopping!
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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