Planning To Do No-Cost EMI Shopping? Here's What You Need To Know Before You Shop

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New Delhi: Shopping with no-cost EMI has become increasingly popular, providing consumers with the flexibility to make purchases without immediate financial strain. However, understanding the intricacies of these schemes is crucial to make informed financial decisions. Here are some key points to consider before opting for a no-cost EMI offer:

Comprehend the Terms and Conditions: Before proceeding with any purchase, ensure a thorough understanding of the terms and conditions attached to the no-cost EMI. Look out for any hidden charges or fees that might impact your overall expenditure. ()

Assess Your Eligibility: Confirm your eligibility for the no-cost EMI scheme based on factors such as your credit score, the minimum transaction amount, and the chosen repayment tenure. ()

Select an Appropriate Tenure: While opting for a longer tenure may reduce your monthly financial burden, it is essential to calculate the total cost over time. Choose a tenure that aligns with your financial capabilities and minimizes additional expenditure.

Beware of Hidden Charges: Despite the 'no-cost' label, some EMI schemes might have underlying charges like processing fees or GST. Ensure you are aware of any potential additional costs.

Monitor Your Credit Limit: Stay within your credit limit to avoid incurring extra charges or facing rejection of your EMI request.

Timely Payments: Maintain a consistent track record of timely EMI payments to prevent penalties or interest charges.

Verify Product Pricing: Double-check the product's price under the no-cost EMI scheme and compare it with the regular price. Remain cautious of any price variations that might offset the interest absorbed by the merchant.

Trustworthy Sellers and Platforms: Prioritize purchases from reputable sellers or trusted e-commerce platforms. Validate their credibility through customer reviews and ratings.

Cancellation and Refund Policies: Familiarize yourself with the cancellation and refund policies associated with the EMI scheme. Some schemes may involve partial refunds or additional cancellation charges.

Impact on Credit Score: Acknowledge that opting for no-cost EMI could still influence your credit score, as it involves a credit check. Be conscious of the potential implications on your credit history.