No Cost Equated Monthly Installment (EMI), also known as Zero Cost EMI. In today’s time, it has become a popular scheme. Most of the e-commerce companies are giving people the facility to shop on the No Cost EMI option. With its help, refrigerators, TVs, washing machines, mobile phones and other things can be bought without any extra charge.
Most companies and retailer shops offer no cost EMI schemes during the festival season. Under this, no interest rate and extra processing fee charge has to be paid. However, it has some such charges, under which you need to be careful. You should know about these charges, otherwise you may have to go through a big loss.
These are the hidden charges in No Cost EMI
No-cost EMIs are one such financial option, which can be converted into multiple monthly installments without interest. According to experts, it may sound attractive, but the things on which this facility is given. Its cost may be high. Also, high processing fees and high delivery charges can remain hidden under this. In such a situation, the planets should choose its option carefully.
Do this work before purchasing No Cost EMI
If you are going to buy any goods on this scheme, then first of all you should know that you will have to pay the processing fee. Along with this, 18 percent GST of the bank will also have to be paid. In such a situation, you should know about the term and condition, tenure, processing fee, pre-closure fee, prepayment penalty and late payment charges etc. for buying any item under No Cost EMI.
Let us tell you that in a circular dated September 17, 2013, RBI said that the concept of Zero Cost EMI does not exist. Such schemes can only be to lure and exploit the vulnerable customers.
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