No-cost EMI or BNPL... both offer no interest, but which one is right for you based on your needs?

The new GST rates came into effect on September 22nd, and the festive sale on Flipkart and Amazon began today, September 23rd. Following the reduction in tax rates, millions of people have flocked to stores and online platforms to shop. Significantly, e-commerce platforms are offering extra discounts and even features like BNPL, including no-cost EMI on credit cards.

Notably, while no-cost EMI offers payment on installments, Buy Now Pay Later (BNPL) allows you to make payments after purchasing a product, just like a credit card, for a specific period. If you also want to purchase goods under no-cost EMI or BNPL during this festive sale, learn about the benefits of both.

What is BNPL?
Buy Now Pay Later (BNPL) is a short-term loan-like option that allows consumers to purchase goods immediately and pay later. Notably, it does not charge any interest. The repayment period may vary from platform to platform.

-BNPL is available with minimal or no documentation.

-No interest is charged if payment is made within a predetermined period (typically 15-90 days).

-This feature is available for purchases at both online and offline stores.

This is a good option for small to medium-sized purchases (₹1,000-₹50,000), especially if you don't want the burden of EMIs.

EMI vs. No-Cost EMI?
EMI and No-Cost EMI can be availed on credit cards for both online and offline purchases.

-Whereas, EMI requires payment with interest over 3, 6 months, or a year.

-No-Cost EMI requires no interest payment.

-EMI tenures range from 3 months to 12 months.

If you make a big purchase and want to pay in installments, then No Cost EMI is a better option.

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