Low-Cost EMI: If you shop with low-cost EMIs during the festive season, see if it's a benefit or a loss..

With the arrival of the festive season, markets become vibrant. Whether it's online sales or heavy discounts at malls, everyone wants to buy something new, like a new mobile phone, TV, refrigerator, washing machine, or furniture. But when the budget doesn't allow it, options like "no-cost EMI" seem very attractive.

But the question arises: is this really a profitable deal, or is there some trickery behind it? Let's find out what no-cost EMI is, how it works, its advantages and disadvantages, and whether it is the right choice for festive shopping?

What is no-cost EMI?
No-cost EMI means that you purchase a product and pay off its price in installments over a few months, without any interest. For example, if an item costs ₹30,000, you can pay off the purchase over 6 months in installments of ₹5,000 per month.

This sounds great, but the actual math is a bit complicated. Often, sellers adjust the interest amount upfront instead of the discount. This means you don't get the discount you could have received, making you feel like you're paying interest-free.

Advantages of Choosing EMI Wisely
The biggest advantage of no-cost EMI is that you can purchase expensive items without disrupting your budget. Paying ₹50,000 at once can be daunting, but splitting the same amount into 10 installments of ₹5,000 makes spending a little easier. During festivals, when expenses are already high, this EMI model doesn't put too much strain on your pocket, especially if you're buying essential items like a washing machine, refrigerator, or laptop.

Disadvantages: While things appear to be "no-cost," there are "hidden costs."
Every good thing comes with a price, and no-cost EMI also has some drawbacks. Often, there are processing fees, device charges, or other hidden charges that you have to pay. Additionally, some offers don't offer direct discounts or cashbacks when opting for no-cost EMI, which are available upon full payment. And most importantly, failing to pay EMIs on time can damage your credit score, making it difficult to obtain a loan in the future.

When is no-cost EMI right for you?
No-cost EMI can be a good option if you don't have the funds to make the full payment immediately, but you can certainly pay EMIs on time. Furthermore, when there's no significant cashback or discount on a product, no-cost EMI may be a better option. Furthermore, if you're planning to purchase multiple items at once during the festive season, EMI can make it easier to manage your expenses.

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