🛍️ “Buy Now, Pay Later—At No Extra Cost!”
Sounds tempting, right?
From smartphones to sofas, retailers flash “No-Cost EMI” as the smartest way to spend.
But wait—is it really free?
Let’s decode what “No-Cost EMI” actually means—so you can shop smart, not sorry—with guidance from Vizzve Finance.
🧾 What Is a No-Cost EMI?
No-Cost EMI means you pay the actual price of a product in monthly installments, without any additional interest.
Example:
A phone worth ₹30,000 → You pay ₹5,000/month for 6 months.
No extra ₹₹₹ added—on paper.
But… there’s more to the story.
🤨 Is It Truly “Zero Cost”?
Not always. Here’s how it really works behind the scenes:
1. 🏷️ Discount Adjusted as Interest
Instead of offering a discount, the retailer gives that amount to the lender as interest coverage.
You: Pay full price over time.
Brand: Gives discount to lender, not you.
Lender: Gets interest indirectly.
2. ⚠️ Processing Fees Still Apply
No-cost ≠ no cost.
Banks often charge:
Processing fees
GST
Penalties on delayed payments
3. 🔒 Limited to Select Cards or Apps
Many no-cost EMI options are only available via:
Partner credit cards
Select fintech apps (like Vizzve-approved BNPL channels)
💸 When Is No-Cost EMI a Good Idea?
It works well when:
✅ You really need the product now
✅ You’re confident about repaying on time
✅ You’re not losing any direct cash discounts
✅ You use it for big-ticket essentials, not impulse buys
💡 Pro Tip: Use Vizzve’s EMI calculator to check if it fits your monthly budget.
🚫 When to Avoid No-Cost EMI
❌ When you can afford to pay in full
❌ When you’re already juggling EMIs or loans
❌ If the product price is inflated just to mask interest
❌ When the fine print includes high penalties
How Vizzve Helps You Shop Smarter
With Vizzve, you get:
📊 Transparent EMI planning
✅ Real no-cost loan options (not just marketing tricks)
📉 Suggestions for better purchase timing
🚨 Alerts for hidden charges
💬 Finance guidance with no judgment
FAQs
Q1: Does No-Cost EMI affect my credit score?
Yes—just like any EMI. If you default, it will show up on your credit report.
Q2: Can I repay early?
Often, yes—but check if there’s a prepayment penalty or processing fee.
Q3: Should I use a credit card or loan app for EMI?
Use whichever has clearer terms, lower fees, and better support—Vizzve helps you compare both.
Final Thought
“No-Cost EMI” sounds perfect. But is it?
✅ Yes—if used smartly, on real needs
🚫 No—if it’s masking cost or pushing you into debt
With Vizzve Finance, you’ll know before you owe.
We help you borrow better, plan better, and live better.
Published on : 8th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.