Outlook Money
A no-cost equated monthly instalment (EMI) plan is a popular option that allows consumers to make large purchases without paying any interest. However, before considering it, it is important to assess its advantages and disadvantages.
In no-cost-EMI, a buyer has to not pay the interest rates, but it is always advisable to read the print before signing in for the no-cost-EMI.
In addition to no interest charges, in no-cost-EMIs, consumers break down large purchases into manageable monthly payments, therefore, making it budget-friendly.
In it, a variety of choices are provided by numerous retailers which simplifies the process for consumers to locate products that meet their requirements.
In no-cost-EMIs, retailers may impose processing fees or other hidden expenses, which might offset the advantages the plan has. It is, therefore, essential to review the terms and conditions before taking a no-cost EMI plan.
The products that have warranties can have high expenses, so before buying, the price of the product at multiple sites should be weighed for comparison.
Other disadvantages include the impact On Credit Score and the risk of overspending.
Compiled by Syed Muskan