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What is a No Cost EMI on Credit Card and How does it Work?
Posted on Thursday, January 18th, 2024 | By IndusInd Bank
In the ever-evolving world of finance, credit cards have become indispensable tools for managing expenses and enjoying various benefits. One such feature that has gained popularity is the “No-Cost EMI” option on shopping sites and portals. In this blog, let’s delve into what exactly a No-Cost EMI is and how it works.
What is No-Cost EMI?
No-Cost EMI, short for No-Cost Equated Monthly Installment, is a financing option that allows you to make purchases on credit without incurring any additional interest costs. It essentially enables you to break down the cost of a high-value item into smaller, more manageable installments over a specific period.
How Does No-Cost EMI on Credit Cards Work?
- Choose Your Product:
When you decide to make a purchase using a No-Cost EMI option, you select the desired product or service, be it a smartphone, laptop, or even a vacation package.
- Select No-Cost EMI Option:
During the payment process, you opt for the No-Cost EMI option. This is usually available for specific tenures, such as 3, 6, 9, or 12 months, depending on the seller and your credit card provider.
- Loan Approval:
Your credit card provider approves a loan equivalent to the total cost of the product. However, instead of charging you interest on this loan, they break it down into equal monthly installments.
- Repayment:
You repay the loan amount in fixed monthly installments, making it easier on your budget. It’s crucial to note that while there’s no interest charged, you still need to pay the full product price.
- Enjoy the Benefits:
By opting for a No-Cost EMI, you get the flexibility to make high-value purchases without the immediate financial strain, making it a convenient option for budget-conscious consumers.
Conclusion:
No-Cost EMI on credit cards is a financial tool that empowers consumers to make substantial purchases without worrying about additional interest charges. It’s a smart and budget-friendly way to manage expenses.
Now, when it comes to choosing a credit card provider that offers seamless and rewarding experiences, IndusInd Bank stands out. With a range of credit cards tailored to suit different needs, IndusInd Bank Credit Cards provide not only the convenience of No-Cost EMI but also various other perks such as never expiring reward points and exclusive offers on your favourite brands. Choose wisely, shop smartly!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
