According to a report by the Economic Times in 2019, Tier III cities recorded a whopping 1000% growth in EMI options within only 12 months, highlighting the popularity and the importance of this financing tool.
By paying using EMI, customers can split their purchase amount over a certain period, making it easier for them to plan their monthly budget.
There are two types of EMIs:
- Regular EMI
- No cost EMI
With regular EMI, the customer has to pay a deposit, and their financier pays the remaining balance. The customer will then repay the loan over the agreed tenure with an interest rate.
In contrast, with a no-cost EMI POS payment option, there are no interest charges involved. The customer pays only the purchase price or MRP over time; nothing more and nothing less. That is why it’s also called zero-cost EMI.
No cost EMI is much easier and more affordable than regular EMI. While this is true, this is still a loan like any other. So as always, planning is essential. One tool that can help you plan is the no-cost EMI calculator.
Why is the No Cost EMI Calculator So Important?
No-cost EMI financing makes life so much easier for a customer, but that will depend on your planning. As a result, it can backfire anytime if not done correctly. Using a no-cost EMI calculator prevents that from happening.
Below are some top benefits of using a no-cost EMI calculator.
Calculation Made Easier
Everything about loans revolves around calculations. So before you make any formal commitments, it is best to do your math. For instance, how much do you qualify for, and how much will you need to pay each month? Can you afford it?
Having solutions to such questions helps you make the correct decision and take a loan that you can handle without unnecessary stress.
Of course, you can always choose to do your calculations manually, but that will take a considerable amount of time and energy. The worst part is, even after all that, your figures might not be accurate.
In contrast, a no-cost EMI calculator is fast, displaying the results in less than a second. Also, it is accurate, meaning you will never go wrong with your math.
Easy Accessibility and Usability
The no-cost EMI calculator is readily available online to anyone with stable internet and a device to connect. You can access it from home or wherever else you are and whenever you need it.
You will only need to enter the relevant details like the loan amount and the tenure to calculate the EMI. It is that easy!
Comparing Different Loan Options
Although no cost EMI POS payment does not attract any interest charges, the cost may vary depending on the financier. For instance, some financiers may include processing charges and discounts as part of the whole deal. Others will feature interest as an upfront discount.
Also, some financiers offer longer tenure loans and others shorter. That will affect your loan burden. For example, let’s say your loan is INR 30,000. If your loan tenure is 3months, your monthly instalment will be INR 10,000. And if it’s 2months, you will pay INR 15,000 each month, which is a much heavier financial burden.
With a no-cost EMI calculator, you can compare various loan offers to find the most affordable option available in the market.
Avoiding a Poor Credit Rating
Two things can spoil your credit rating; delaying payments and defaulting payments. A no-cost EMI calculator can help you avoid these two mistakes by:
- Allowing you to calculate and determine a loan amount you can afford to pay
- Helping you choose a suitable loan tenure
- Ensuring that you know the exact amount to pay each month
- Identify the ideal financier for your needs etc
In short, the debit card EMI calculator ensures that you manage your loans effectively and make all your payments on time.
All loans and financing options have the potential to help you thrive or cripple you financially. Avoid the latter at all costs and adopt the following tips:
- Take your time to understand all your options
- Do your math
- Know your financial capability and be true to yourself
- Above all, always rely on the no EMI calculator to manage your loans