Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
Credit cards can be helpful when you have to make some big purchases. With the EMI options that come with many credit cards, you can easily make big-ticket purchases. There are a lot of Banks that offer credit cards with no-cost EMIs. With no cost EMI credit cards, users can purchase gadgets without worrying about down payment, processing fee, etc.
So, each month, the buyer has to pay Rs.2,157. They will be charged an interest worth Rs.441 and a processing fee of Rs.250. Hence, the buyer has to pay a total amount of Rs.12,691.
RBI has put stricter guidelines on banks that offer No cost EMI credit cards to its customers. According to the RBI, the concept of No cost EMI is invalid, as the bank charges the customer with interest indirectly in the form of processing fees. Many merchants also include the interest fee in the price of the product, which as per RBI is fraudulent. This is the reason why many major banks charge interest on a monthly basis and then refund it to customers in the form of a cashback or a one-time quick discount.
The various benefits of No-Cost EMI are mentioned below:
The various disadvantages of No-cost EMI are mentioned below:
While shopping online, individuals can avail a no-cost EMI while buying expensive gadgets, furniture, appliances, lifestyle accessories, among others. However, at brick-and-mortar stores, this finance scheme is applicable only on gadgets, appliances, and furniture. Listed below are the procedures that a buyer needs to follow in order to avail a no-cost EMI:
While shopping online for gadgets and appliances on websites like Flipkart and Amazon.in, the buyer has to follow the steps listed below:
While shopping in brick and mortar stores for expensive gadgets, furniture, and appliances, the buyer has to follow the steps listed below:
Individuals who want to make a big-ticket purchase using the no-cost EMI option online can do it by buying the gadget or appliance on Flipkart or Amazon India. These two online stores provide the no-cost EMI option for their customers so that they don’t have to burn a hole in their pockets while making the purchase. Let’s take a look at how Flipkart and Amazon India’s no-cost EMI option functions:
The online shopping giant has tied-up with 13 different banks to offer this finance scheme to its customers. However, this option is available on a list of products only. There is no additional interest or processing fee charged on the product by Flipkart. For instance, if an individual buys a refrigerator for Rs.18,000 and chooses to pay the money back in 9 instalments, they will need to pay Rs.2,000 for 9 months. There will be no extra costs involved in the transaction. Listed below are the steps that one needs to follow to avail the no-cost EMI option on Flipkart:
The Indian branch of the US e-commerce website Amazon, offers a no-cost EMI option in partnership with 11 different banks, namely, Standard Chartered, Axis Bank, HDFC Bank, Yes Bank, HSBC, Kotak Mahindra Bank, SBI, RBL, and on EMI card provided by NBFC (Non-banking Financial Company). While purchasing a product on Amazon.in that has a no-cost EMI option available, the buyer will not have to pay any additional costs. For example, if they are buying a television for Rs.21,000 that comes with the option of no-cost EMI and they choose to make the payment in 9 instalments, they will have to pay Rs.3,000 for 9 months. Hence, they will end up paying Rs.21,000 which is the exact amount borrowed. However, Amazon.in doesn’t provide this facility for an EMI tenure of more than 12 months. Listed below are the steps that one needs to follow to avail the no-cost EMI option on Amazon.in:
Apart from online stores like Flipkart and Amazon.in, a lot of brick and mortar stores also provide a no-cost EMI option on mobiles, furniture, appliances, amongst an array of products that the customers can choose from. However, at some of these stores, the customer would need to fill out a form and submit a couple of documents while availing this option. Once the documentation is fulfilled, customers will be able to take home the product they want to. However, most of these stores have a minimum purchase amount that the customer needs to fulfil in order to avail the no-cost EMI option. Listed below are some of the stores and retail outlets that offer a no-cost EMI option on gadgets and appliances to their customers:
There are quite a few banks in India that offer no-cost EMIs for consumers who want to buy gadgets and appliances online as well as from brick-and-mortar stores. Listed below are the names of the banks that offer this facility:
While availing the no-cost EMI facility, you will not have to pay any down payment, processing fee, or an interest.
Yes, the bank will charge you an interest. However, the interest that they charge will be given to you upfront as a discount at the time of buying the product. So, this way, they give you a benefit of no-cost EMI.
It takes 3-5 working days for the seller to process the EMI option chosen by you.
No, this option will be available on selected products only.
Yes, you can avail the same on exchanging products as well. However, the EMI amount will be calculated on the basis of the amount that will be reduced.
You will need to contact YES Bank’s customer care to check if the No Cost EMI facility is available on the FinBooster: Yes Bank - BankBazaar Co-branded Credit Card.
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