No Cost EMI is often written at the time of online shopping. Do you know what it means? Companies with No Cost EMI offer discounts and attractive offers. Should you buy any goods by looking at no Cost EMI, will you be benefited from it? We are telling the news about what the No Cost EMI is, and how it works.
Understand the meaning of No Cost EMI:
Hearing No Cost, EMI means that you don't have to pay any interest on the loan. But, in fact, your bank withdraws the discount given as interest. The Reserve Bank of India (RBI) had refused to introduce a zero% EMI scheme on retail products to banks in the year 2013. Then the banks took another option.
How does work:
No Cost EMI is divided into three parts-retailer, bank, and consumer. You may have often noticed that some banks give no Cost EMI option on credit cards. However, you should have a credit card for that bank to get this deal. In addition, you can take EMI cards from a non-banking finance company. Retailers give no Cost EMI option on products that have to be sold quickly. Some EMI cards have to pay fees. In the case of No Cost EMI, retailers give the consumer a discount on the amount of interest.
No Cost EMI should be taken:
HDFC Bank Limited, State Bank of India, RBL Bank Limited, Yes Bank Limited, Axis Bank Limited, ICICI Bank Limited, Standard Chartered Bank and Kotak Mahindra Bank offer no Cost EMI option on e-commerce websites like Amazon and Flipkart. Let's say that in most cases, the discount on cash is not more than EMI. This is a way of marketing so that the old stock can be eliminated. Experts point out that you should avoid taking loans for white goods (washing machines, AC, mobile phones, fridges). To understand marketing tactics and then make a purchase.
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