With the digital transformation of the market, shopping habits of the consumers have also changed considerably. Online shopping has become a norm, especially during the COVID-19 pandemic.
According to the recent report by ResearchandMarkets.com, the Indian online shopping market is predicted to grow at the CAGR of 19.6% between the years 2020-2027. In fact, India stands as the second-largest online shopping market after China. But, is a lack of credit ability, a financial constraint proving a barrier to your shopping list? This is where Shopping on No Cost EMI come into the picture.
No Cost EMIs, as the name suggests, allow customers to pay for their purchases in monthly installments, without any additional cost or interest. These are payment schemes that allow buyers to make purchases using their credit or debit cards. It offers the flexibility of choosing a convenient repayment period with zero processing fees and zero-down payment.
Shop online on No Cost EMIs
Today, purchase of household gadgets, furnishing, electronic items, mobile phones, jewelry, and even high-end products like luxury watches, designer apparel, and bags can be made at ease thanks to No Cost EMI options. Brands such as Apple, Samsung, and Amazon have partnered with banks such as HDFC, ICICI, Axis, and Bajaj Finance to offer this option to their customers. In addition, e-commerce sites such as Flipkart, Amazon, Myntra, and Tata Cliq have launched No Cost EMI options in collaboration with many credit card companies. Customers can shop according to their convenience and budget.
In case buyers don't have a credit card they can also avail purchase on No Cost EMI through Bajaj EMI card. It provides a pre-approved loan to their customers. Buyers can use the Bajaj EMI Card at any of the authorized stores to make their purchase, without the need for any upfront payment or credit score rating.
Advantages of No Cost EMIs
- Budget-friendly shopping: No Cost EMI facilities allow buyers to make purchases with zero interest rate. It eliminates transactional expenses such as interests on loans or credit card debts that might have bothered them. With this facility, the cost of the product does not burden the budget plan. It's a try-before-you-buy option that customers can take advantage of.
- Flexible Repayment Options: Buyers have the flexibility to choose the tenure of their repayment ranging from 3 to 24 months. They can opt for a balance that suits their personal budget. They can also prepay or foreclose the loan without incurring any extra charges.
- No Hidden Charges: No Cost EMI schemes charge zero processing fees on purchases made through them. Hence, the purchase amount incurred remains the same from the beginning to the end of the repayment period.
- Attracting Cashback Offers: Some No Cost EMI facilities offer additional cashback options, discounts, and rewards to their clients. Buyers can be benefiting from such offers if they meet the bank’s criteria.
Drawbacks of No Cost EMIs
- Credit Score: Even though there are no credit scores attached, this service is still tied to credit cards and hence encourages credit utilization, which may lead to long-term debt.
- Limited EMI Options: Not all products come under the No Cost EMI facility. Some of the electronic items have a minimum selling price or a brand limitation, which limits the customer's choice. The same applies to the tenure of the No Cost EMI facility, which differs even in the case of the same brand for the same product between different credit card providers.
- Cost of Processing: Although there are no interest rates for buying the product on EMI, processing charges for the EMI facility are charged. Hence, it is advisable to compare the processing charges with other financial institutions.
Conclusion
No Cost EMI’s option stands as one of the most accessible payment schemes for customers, who are keen to shop for their favorite products and gadgets but don't have substantial disposable income to buy them outrightly. This option enables buyers to shop online as per their decided budget. They can pay off their purchase in small, affordable chunks over a period of time, depending on their preference. Overall, No Cost EMIs' benefits outweigh the drawbacks and can be an excellent option for responsible retail therapy.
It is important to read through the terms and conditions, compare various options and purchase after a thorough understanding. Customers ought to be mindful of their budget plans, opt for a No EMI's option suitable for them, make timely payments and avoid junk shopping habits while indulging in bill payments through EMI.