No Cost EMIs On Credit Cards: A Good Option For You?

no-cost EMI offers

It does not matter if you own a business or a customer; a credit card is beneficial. Credit card mode of payment in India is most common in recent times. Many financial companies, along with retailers, provide the option of making payments using credit cards. These no-cost EMI offers on credit cards are mainly beneficial during festive times when the expenditure is more, and the income is less.

Festivals in India are all about giving gifts to loved ones. Hence it has been observed that most people use their credit cards to buy festival-related gifts. However, there are many other places where one uses credit cards. Buying electronic gadgets has always been a craze amongst people. Each year new electronic devices are being launched in the market, and people feel the urge to upgrade their appliances, especially their phones.

What is a credit card?

Before we dive into the concept of no-cost EMI, we first need to understand the use of credit cards and what it does. Well, a credit card means buy now and pay later. This very feature of the credit card makes it feasible for people to use it more frequently. At the end of every month, the credit card provides the billing statement, which the individual has to pay to the respected finance company. One can either deduct the money from the account directly, make a cash payment at the brand, or pay through an EMI.

Credit card has proven beneficial to most of them. However, it does have its drawbacks. Each time an individual buys on a credit card, a surcharge applies to it from the financial institutions. Due to this surcharge, many people hesitate to use their credit cards. Many financial companies have now introduced no-cost EMI offers on credit cards. If the individual chooses to pay via EMI, he will not be charged interest every month. He will enjoy no-cost EMI for his purchase on the credit card.

What is a no-cost EMI?

As mentioned above, no-cost EMI is provided to individuals with credit cards or Debit cards where there is no interest taken on their cards. It is a good option for both financial companies and customers. It gives the customer the liberty to shop when they wish to and pay in installments without being charged extra. 

With this facility provided by many financial institutions, many sellers online can now offer deals on products that customers can buy. However, it is essential to select the option of No-cost EMI when using a credit card in case of online purchases. The financial institutions will not charge a surcharge on the Equated Monthly Installments, also referred to as EMI. We can discuss below if the No-cost EMI on credit cards is good or bad for an individual.

An advantage of using no-cost EMI

Access and liberty to buy expensive products

Everyone wishes to buy premium products for their quality, style, and status in society. It could be a phone, a car, a bike, or many other premium things. However, due to prior commitments, people cannot buy such things. If you wait until the next payday, the product will be sold out, or the offer will be over. In such situations, having a credit card can be beneficial. You can buy now and pay later with a No-cost EMI facility using the NFC payment in India.

A disadvantage of using No-cost EMI

This facility of no-cost EMI provided by the financial institutions gives the individual the freedom to buy products. Sometimes, individuals might not need the product but will buy it for its sake. Hence one of the most significant disadvantages of using No-cost EMI is each one’s greed.

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