No-Cost EMI is a free loan
Buying a product on EMI reduces the burden of paying a huge cost upfront. But there is always a cost that you have to bear on No-Cost EMI.
Interest on the loan is built into the EMI, except that the breakup may not be clearly visible to you upfront. Also, you pay a processing fee and GST on interest every month.
And, like any other loan, you need to repay the No-Cost EMI on time. If you fail, it will affect your credit score.
Read more about the hidden cost in No-cost EMI here.
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