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1. WHAT IS NO COST EMI ?
• No Cost EMI is a finance scheme offered by merchants and retailers by
which you pay only the product price in EMIs spread over a definite time
period ranging generally between 3 to 12 months.
• Flipkart first introduced “No Cost EMI” scheme, which was later being
provided by other E-Commerce sites like Amazon.
• It is now emerging as a popular method for buying Consumer durable items
like Television, Refrigerator, Washing Machine, Air Conditioner etc.without
affecting your monthly budget by one time huge payment.
2. 0% INTEREST, IS IT REAL ?
• Is “No Cost EMI” scheme really
interest-free ?
• Reserve Bank of India (RBI)
mentioned in a circular released in
2013 that the concept of “0%
Interest”is not valid.
• It clearly means that banks cannot
offer interest-free loans to the
borrowers.
3. HOW DOES NO COST EMI WORK?
 This finance scheme offered by retailers works in either two ways :
i. When the discount is equal to interest:
This is the most common way retailers offer No Cost EMI. The interest
amount applicable is offered as a discount on the product. It means if you
make the full payment upfront you get the instant discount which is not
provided in case of EMI.
ii. When the interest amount is added to the cost of the product:
For example you want to buy a product that costs ₹30,000. In a No Cost
EMI scheme, you will get this product at ₹34,500. In this case, the interest
(15%) amount of ₹4500 is added to the product price that is payable in
EMIs spread across a specific time period.
5. BENEFITS OF NO COST EMI
• Offered by almost all e-Commerce sites as
well as retailers shop.
• One can purchase with both credit card &
debit card.
• No interest charges or down payments are
required.
• Helps in making purchase budget friendly.
• Improves credit score of consumer.
• Makes consumer durable items affordable for
all.
THANK YOU FOR WATCHING

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No Cost EMI - 0% Interest Loan

  • 1.
  • 2. 1. WHAT IS NO COST EMI ? • No Cost EMI is a finance scheme offered by merchants and retailers by which you pay only the product price in EMIs spread over a definite time period ranging generally between 3 to 12 months. • Flipkart first introduced “No Cost EMI” scheme, which was later being provided by other E-Commerce sites like Amazon. • It is now emerging as a popular method for buying Consumer durable items like Television, Refrigerator, Washing Machine, Air Conditioner etc.without affecting your monthly budget by one time huge payment.
  • 3. 2. 0% INTEREST, IS IT REAL ? • Is “No Cost EMI” scheme really interest-free ? • Reserve Bank of India (RBI) mentioned in a circular released in 2013 that the concept of “0% Interest”is not valid. • It clearly means that banks cannot offer interest-free loans to the borrowers.
  • 4. 3. HOW DOES NO COST EMI WORK?  This finance scheme offered by retailers works in either two ways : i. When the discount is equal to interest: This is the most common way retailers offer No Cost EMI. The interest amount applicable is offered as a discount on the product. It means if you make the full payment upfront you get the instant discount which is not provided in case of EMI. ii. When the interest amount is added to the cost of the product: For example you want to buy a product that costs ₹30,000. In a No Cost EMI scheme, you will get this product at ₹34,500. In this case, the interest (15%) amount of ₹4500 is added to the product price that is payable in EMIs spread across a specific time period.
  • 5. 5. BENEFITS OF NO COST EMI • Offered by almost all e-Commerce sites as well as retailers shop. • One can purchase with both credit card & debit card. • No interest charges or down payments are required. • Helps in making purchase budget friendly. • Improves credit score of consumer. • Makes consumer durable items affordable for all.
  • 6. THANK YOU FOR WATCHING