No Cost EMI: What It Is and How It Works



Finance has always been a tricky business for the common man in India. With ever-increasing expenses and inflation, loans and credit have become a lifeline for many households. However, with such loans comes the added burden of interest rates, making it difficult for people to manage their finances. Thankfully, No Cost EMI is a great solution for those looking to make big purchases like a refrigerator, air-conditioner, furniture, or any costly item.

No Cost EMI means that the consumer pays the total amount in easy instalments with no added interest cost. The purchase becomes more affordable for people, as they do not have to worry about huge interest charges. Instead, the interest charges are absorbed by the retailer or the distributor. This makes No Cost EMI a popular choice for people to purchase expensive items without affecting their monthly budget.


How No Cost EMI works?


When a customer purchases an item on the No Cost EMI option, the retailer or the distributor pays the interest charges on the loan to the bank or the lending institution. This allows consumers to pay for their purchases in monthly instalments without worrying about any hidden costs. The total amount is divided into equal monthly instalments based on the tenure chosen by the buyer.


For instance, if a consumer wants to purchase an air-conditioner (AC) for their home, they can choose the No Cost EMI option by selecting the tenure and the monthly instalment they are comfortable paying. If the AC costs Rs. 30,000, and the No Cost EMI tenure selected is six months, then the consumer has to pay an equal instalment of Rs. 5,000 for six months without any hidden cost. This is a good choice for consumers who want to avoid making a big payment at once and looking for a flexible payment option.



Factors to consider while choosing the AC for home


Deciding to purchase an air-conditioner is a crucial decision for every household. However, with the plethora of options available in the market, choosing an AC that fits the budget and needs is overwhelming. There are numerous factors to consider while purchasing an air-conditioner.


Size


The size of the AC unit is crucial as it determines the cooling capacity of the machine. The size required depends on the size of the room or space where the AC will be used. A 1-ton AC unit is suitable for a room of around 120 sq. ft, while a 2-ton AC unit is perfect for rooms over 200 sq. ft. Therefore, it's important to choose the right size of the air-conditioner to get the best performance.


Type of AC


There are different types of ACs available in the market – Split AC, Window AC, Portable AC, and Central AC. Split AC is the most popular choice among consumers as they are energy-efficient and provide better cooling than the other options. Window AC is a good option for smaller rooms or spaces. Portable ACs are the most versatile of all, as they can be moved from one room to another. Central AC units are suitable for larger spaces like offices and big homes.


Energy efficiency


Energy efficiency is another crucial factor to consider when choosing an AC. A star rating system has been developed by the Bureau of Energy Efficiency (BEE) to determine the energy efficiency of ACs. The higher the star rating, the more efficient the AC is, and the lower the electricity bill will be.


Brand and price


Choosing a reliable and trustworthy brand is essential when buying an air-conditioner. A good brand provides better performance, better after-sales service, and durability. Price is another factor to consider while purchasing an AC. A No Cost EMI option can be a good choice for people who want to purchase a good quality air-conditioner without disturbing their monthly budget.


No Cost EMI offers


No Cost EMI offers are widely available in India on various platforms. Many banks and financial institutions also provide No Cost EMI options on credit and debit cards. E-commerce sites like Flipkart, Amazon, and Paytm also provide No Cost EMI options. The availability of No Cost EMI makes high-ticket items affordable for consumers, with no extra cost or interest charges. 


Benefits of No Cost EMI 


No Cost EMI offers immense benefits to consumers in multiple ways. Here are some of the top reasons why No Cost EMI is a good option:


Budget-friendly and affordable:


No Cost EMI makes expensive purchases affordable. It allows consumers to pay for their purchase in equal monthly instalments without hurting their monthly budget.


No hidden charges:


No Cost EMI means no hidden charges or interest costs. The total amount is divided into instalments, and whatever the consumer pays, they pay only for the item's cost.


Flexible tenure:


Choosing the tenure of the No Cost EMI option is flexible. Consumers can opt for the tenure that suits their needs and comfort.


Easy application and processing:


Applying for No Cost EMI is easy. Consumers can apply directly through the retailer or distributor and pay for the purchase in instalments.


Conclusion


In conclusion, No Cost EMI is an excellent option for people looking to make expensive purchases without the added interest cost. It provides flexibility, affordability, and convenience, making it a popular choice for consumers. Choosing an air-conditioner is a challenging decision, but considering the factors mentioned above will help in selecting the right AC for homes. No Cost EMI offers wide benefits that make it a feasible option for people to purchase expensive items without worrying about budget constraints.


Rajeev Sinha

My name is Rajeev Sinha and I am a Finance Expert & completed my Masters in Finance and Administration. I have good knowledge about different finances schemes which may help you through my content and answers on this blogging website.

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