What is No Cost EMI? How to buy a product on EMI?

What is No Cost EMI?
What is No Cost EMI?

What is No Cost EMI? When a person is unable to buy a product by paying the full amount. So companies and retailers give the option to buy it on EMI. But nowadays a new option has gone a long way in the discussion. And that is – NO COST EMI

You must have seen that on many eCommerce websites like Flipkart or Amazon, buy a laptop in No Cost EMI, buy a phone, or buy a camera. All the shopping sites give No Cost EMI on all the Large Appliances.

If you do not know what is No Cost EMI? Which products can you buy using this or what is its condition? If you do not know about it then you are at the right place.

What is No Cost EMI?

No Cost EMI is such a payment process in which you can pay the total value of any product in small monthly installments without any interest on the purchase of any product. In this, you have to pay only the price of the product. It does not attract any interest, file charges, processing fees, or any additional charges of any kind.

For example:- If you buy a product from Amazon or Flipkart on EMI, then you have to pay the full price in 6 to 9 installments and with this, you also have to pay some interest. That is if you buy any product worth 15,000. So you have to pay up to 14 thousand with EMI. Whereas if you buy any products worth 15000 on No Cost EMI. So you do not have to pay any kind of interest in it. And you get the same products for their actual price i.e. Rs 15000 only. You do not have to pay any interest even after paying 3 to 4 EMIs.

No Cost EMI, that is, without paying interest, the customer can buy any product online very easily on EMI.

How No Cost EMI Works?

Nothing in the world is free, no one helps someone without any benefit unless he himself benefits.

In reality, there is no such thing as No Cost EMI, even then the bank is still charging interest. Just this does not harm you and it only benefits you, so now let’s talk about how the whole process of No Cost EMI works after all.

Whenever a company launches its product, now the company makes a tie-up with the bank to sell its product and the company tells the bank that you should finance our product at NO Cost EMI and in return, we will give you 2000 per unit, which is their actual interest.

After this, according to this deal between the bank and the company, the company decides the price of its product. If you think that you are not paying interest, which is also fine, the company is giving money to the bank, but the company adds that money to the same product.

What are the benefits of No Cost EMI?

With No Cost EMI, the consumer benefits the bank, and the manufacturer all benefits from it. Let us understand it with an example.

  • The biggest benefit of No Cost EMI is to the customer. In this, they do not have to pay the full price of any product together. He can easily repay the full cost of the product in 3 to 4 installments. Apart from this, he does not even have to pay interest on ordinary EMI.
  • That product of Flipkart does not sell easily or many people cannot buy by paying money at once. Sold that too easily through No Cost EMI.
  • The bank also benefits in No Cost EMI, the bank deals directly with the company without taking interest from the front and takes its commission per piece, then the more pieces of any product sold, the more profit the bank gets.

So friends, now you must have understood What is No Cost EMI? and what are its benefits, if you like the information related to No Cost EMI, then do not forget to share it with your friends. Also, if you have any kind of question, then comment below in the comment box.

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