While purchasing anything online, you might have come across a term and that is “No Cost EMI available”. But what exactly is this? and how does this thing work?
That is what we will be discussing in this article.
There are so many people out there who want to try this payment option. But they are afraid of doing it because they don’t know how it works after all.
And you know that nobody wants to put themselves into trouble by trying the things that don’t know anything about. But don’t worry after reading this guide. You will educate yourself about this thing.
What is No Cost EMI?
No cost EMI is one of the many payment options that are available on e-commerce websites. If you choose this option then you can pay using your credit card with no extra cost of interest.
So if you are purchasing a smartphone worth Rs. 50,000 and you have chosen a credit period of 12 months. Still, you will not pay a single extra rupee as interest.
The net amount you will be paying to your credit card company will be Rs. 50,000 only.
How Does No Cost EMI Works?
First of all, you have to check one thing. And that if you have to check if the e-commerce website supports the no cost EMI option on your credit card.
If yes then you are good to go.
Most of the websites calculate the amount of interest you will have to pay to your credit card company. And they give you that much discount upfront.
So when this happens the amount you will have to pay to your credit card company will be reduced. (principal + interest)
The ultimate result is you will be paying only the agreed amount and not for the interest to your credit card company.
How to Avail this Payment Option?
Just go to the e-commerce website, search for the product, and look for the no cost EMI offers. If you find the name of the credit card or the issuer bank there.
Then it means that your card is eligible. Once you have made sure that you have selected the “No Cost EMI” option you can check out and select the EMI tenure.
This is how this thing works. I hope this article helped you understand this concept.
If you need more help, then you can call the customer care of your credit card company. Or give a call to the customer care of the e-commerce website from whom you want to purchase the product.