How no cost EMI works on credit card?

I believe EMIs are useful if you need to purchase anything which your bank account cannot afford. It includes a high-end laptop, mobile phone, or that fashionable card design. You don't need to bother about it much because of EMIs (Equated Monthly Instalments) on credit cards. If you are worried about how no cost EMI works on credit card, keep reading.

How does no cost EMI work on credit card?

Imagine you use your credit card to purchase your phone through a no-cost EMI plan. Your credit card's outstanding balance is reduced by the cost of the item. Your credit card limit is steadily increased with each EMI that you pay every month.

Take the example of using a credit card with an Rs.3,00,000 limit to purchase an Rs.60,000 item. Your credit card limit will suddenly drop to Rs.2,40,000 following the purchase. Your credit card limit would rise by that much if you opt for a six-month EMI of 10,000 rupees, which will happen with each payment you make on your credit card. Your full Rs.2 lakh credit card limit will therefore be recovered after six months.

What are the advantages of no-cost EMI offers?

• There are no needed down payments, interest fees, or extra expenses.

• When you want to purchase in quantity while sticking to your limit throughout the festive period, this plan works well.

• This feature also functions when exchange offers are made.

• Leading online retailers like Amazon and Flipkart provide this financing option. 

• You are able to use this facility regardless of the type of bank account you have, including credit and debit cards.

Is no-cost EMI the best option?

Yes, no-cost EMI is a very practical method of completing the transaction. It is if you are certain that you must have the item you intend to purchase through it. And you will be capable of paying the EMI each month for the duration of the term. It is pointless to pay more than you should have paid in the initial place. It is not advisable if you are unsure of the transaction and were only thinking about it at the moment.

How no cost EMI works on credit card must be clear to you now.