What is a No Cost EMI on Credit Card and How does it Work?

Posted on Monday, February 26th, 2024 | By IndusInd Bank

In this day and age, convenience and flexibility of payments have become a major consideration factor for consumers across the world. That’s why banks and financial institutions have introduced innovative solutions to make purchasing big-ticket items more accessible and affordable. One such solution that is the most popular amongst consumers is the concept of No Cost EMI (Equated Monthly Instalments) on credit cards.

You might have heard of it and even bought your favourite appliance using it. But what exactly is a No Cost EMI, and how does it work? Let’s find out!

What is No Cost EMI on Credit Cards?

No Cost EMI is a payment option that allows you to divide the cost of any purchase into fixed monthly instalments without incurring any additional interest charges or processing fees. This means you pay only the product’s actual price in instalments, without any extra or additional cost.

How Does No Cost EMI Work?

When you opt for a No Cost EMI on your credit card, the total purchase amount is divided into equal monthly instalments over a predetermined tenure, usually from 3 to 24 months, depending on the product and the merchant’s terms. Unlike traditional EMI options, where interest charges apply, the no-cost feature ensures that you pay only the principal amount, making it an attractive financing option for consumers.

The participating bank or financial institution pays the amount on your behalf to the merchant, allowing you to enjoy the convenience of spreading payments without worrying about additional expenses.

What are the benefits of No Cost EMI?

• Affordability: No Cost EMI makes high value purchases more pocket-friendly by spreading the cost over several months, easing the financial burden on the buyer.

• No Interest Charges: Since there are no interest charges associated with No Cost EMI, you end up paying only the purchase price, avoiding the extra expense that typically comes with traditional EMIs.

• Flexibility: With multiple tenure options available, you can choose the repayment period that best suits your budget and financial constraints.

• Convenience: No Cost EMI also offers a hassle-free payment solution, allowing you to enjoy your purchase immediately without putting a strain on your finances.

IndusInd Bank Credit Cards: Elevating Your Shopping Experience

When it comes to best shopping deals & rewards, IndusInd Bank Credit Cards stand out as a preferred choice for our customers. Here’s why:

• Exclusive Offers & Deals: IndusInd Bank Credit Cards come with a plethora of exclusive offers and discounts across a wide range of categories, including fashion, electronics, dining, travel, and more.

• Never Expiring Reward Points: Earn reward points with no expiry date on every transaction you make with your IndusInd Bank credit card. Redeem them for exciting gifts, vouchers or discounts, enhancing your shopping experience.

• Comprehensive Insurance Coverage: IndusInd Bank Credit Cards offer complete coverage, including travel insurance, and more, providing you with added peace of mind while you shop.

• Contactless Payments: With the convenience of contactless payments, you can simply Tap your credit card to make payments, to give you a shopping experience that’s seamless and hassle-free.

In conclusion, No-cost EMI on credit cards has been a game-changer in the world of retail finance. It has offered consumers a convenient and cost-effective way to make purchases without the burden of interest charges and spreading out their payments with EMI. But when it comes to leveraging the benefits of shopping with a credit card, IndusInd Bank stands at the forefront, providing cardholders with unmatched rewards, offers, and privileges, making every shopping journey a delightful experience. So, the next time you’re eyeing that big-ticket item, consider opting for a No Cost EMI on your IndusInd Bank credit card and enjoy the best of both worlds – affordability and convenience. Happy shopping!

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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.