“0% interest EMI!”
“No-cost finance!”
“Buy now, pay later – with zero interest!”
We’ve all seen these ads splashed across:
Phones
Appliances
Furniture
Travel packages
But here’s the real question:
👉 Is it really free money?
Let’s decode the hidden reality behind these tempting offers.
The Hidden Costs Behind “Zero Interest”
1. Processing Fees
Many lenders charge:
₹500–₹1,500 upfront
Sometimes more for high-ticket items
This acts like prepaid interest — even if they don’t call it that.
2. Inflated Product Prices
Retailers sometimes bake in the interest by:
Increasing the MRP for 0% EMI buyers
Offering discounts only for full-cash buyers
So you pay more for the same product under “zero interest.”
3. Limited Tenure Options
These schemes often come with:
Short tenure (3–6 months)
High EMI burden if the cost is big
Penalties if you miss a payment
You could end up paying more due to late fees.
Example: Smartphone at ₹60,000
| Option | Upfront Payment | Processing Fee | Tenure | Total Cost |
|---|---|---|---|---|
| Full Cash | ₹60,000 | ₹0 | – | ₹60,000 |
| 0% EMI | ₹10,000 down + ₹500 fee | ₹500 | 6 months | ₹60,500 |
| Credit EMI | ₹0 | ~13% interest | 12 months | ₹64,000+ |
So, “0% interest” can still cost you more.
Vizzve’s Take: Transparency First
At Vizzve, we believe:
The interest rate should match reality
All charges should be upfront & clear
Customers shouldn’t be lured into false ‘free loan’ traps
What to Check Before Choosing a 0% Offer
✅ Is the product price same as cash?
✅ Any processing or prepayment fee?
✅ What happens on late payments?
✅ Who is offering the finance – bank, NBFC, or retailer?
Real User Alert: Don’t Skip the Footnotes!
“I chose 0% EMI on a fridge but paid ₹2,000 more than the store price later — lesson learned.”
— Karthik, Chennai
FAQs
Q1: Are 0% interest loans completely bad?
Not always. They’re good if there are no hidden fees and same MRP.
Q2: Is it better than using a credit card?
It can be — only if no extra fees and short term. Credit cards usually charge more interest.
Q3: Does Vizzve offer 0% interest loans?
We offer low-interest transparent loans with zero hidden charges — not fake-free EMI traps.
Published on : 30th July
Published by : SMITA
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