Explain No-Cost-EMI And How It Works in Your Benefit

No-cost-EMI’s and zero down payment mobile phones are much in demand these days. There was a time when buying the latest smartphone required people to start saving up early or use their credit cards to purchase these high-end smartphones at high-interest rates. That is no longer the case!

No-cost-EMIs are essentially easy monthly payment schemes that allow people to purchase the latest smartphones without having to pay any interest charges on their purchases. This way, they can get their hands on the latest phones without having to pay any additional charges as interest rates to the credit financing companies. Moreover, the best part of this scheme is that even credit card companies have jumped into the fray and started offering no cost EMI mobile on credit card purchases.

So, if you have a credit card, you don’t even need to apply for financing. You can walk into a retail outlet or shop online for the latest smartphones and pay using your credit card by converting the amount into no-cost-EMI.

  • What are the benefits of no-cost-EMI?

No-cost-EMI’s come with a multitude of benefits that have made lives easier for the modern-day consumer. Let’s look at a few of the foremost benefits that come as a part of these schemes.

  • Saves Money

These schemes help save you a lot of money since you only end up paying the exact cost of the mobile, unlike other Emi schemes where interest charges are also levied on top of the cost of the product. So, if the cost of a phone is ₹60,000, then you only pay that amount, not ₹69000 due to the added interests.

  • Long Repayment Periods

These schemes often come accompanied by longer repayment periods that range from as little as three months to a year, giving customers plenty of options to choose to repay as per their convenience.

  • Works With Almost All Credit Cards

No-cost-EMIs work with almost all credit card providers. So, you don’t need to own a specific credit card to take advantage of this scheme. All you need is a card, and you are good to go.

  • Even works with Debit Cards

These days, the schemes are no longer limited to credit cards alone; you can also use your debit card to purchase high-end devices and convert the amount into a no-cost EMI. However, you need to have a good and long-standing relationship with your bank for this to work, as this facility is currently largely limited to a few customers.

  • Buy Now Pay Later

Buy now pay later apps and even online retailers like Amazon and Paytm Mall give you the option to purchase smartphones on no-cost-EMIs using their credit lines. So, if you don’t have a credit card or debit card, you can still get access to the scheme. 

It works by providing you with a pre-approved credit line, which is subject to a credit check. If you qualify, all you would need to do is fill up the KYC information to start using the credit line instantly. And the best part is that you can use the credit line repeatedly to buy items at no-cost-EMIs as long as you keep repaying on time.

No-cost-EMI’s have come as a boon to customers in a world where smartphones are constantly evolving, and people are changing their phones faster than any time in recent history. Without no cost, EMI schemes smartphones sales wouldn’t have been as phenomenal as they are, since they give the middle-class customer the power to buy their dream mobiles without burning a hole in their pocket or saving for months in anticipation of their favourite model’s release date.

So, in case you are thinking of getting your hands on that latest smartphone, don’t forget to take the benefit of no-cost-EMI schemes if you want to save money and would rather avoid paying exorbitant interest rates on consumer durable loans.


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