How Does Easy EMI Work?

Equated Monthly Instalments (EMIs) are a great financing option to purchase a big-ticket product without paying the full price upfront. Since they increase your purchasing power, easy EMI options have become popular. 

This financing facility enables you to spread your cost of purchase over a tenor of your choice without paying an additional interest charge. Knowing how easy EMI works will help you manage your monthly budget more effectively.

Regular EMIs allow you to purchase a specific high-value product by making a small down payment. The lender pays the remaining amount to the retailer, which you repay to the lender over a predetermined tenor along with a fixed interest rate.

No-cost EMI is an excellent alternative to this traditional financing option. Under this scheme, you can repay the borrowed sum over a specific period without paying any interest. In certain cases, you may need to pay a processing fee. 

A no-cost EMI facility can be an attractive choice to buy an appliance or a luxury watch which comes with a substantial price tag. Lenders usually provide this facility with an upfront fee and allow you to repay in instalments. 

Here is how easy EMIs work:

Equating Discounts

To provide this facility, some retailers forego discounts they may have offered on upfront payment. They use this amount to cover the cost of interest charges.

Built-in Interest

Lenders may also provide no-cost EMIs by adding the cost of interest to the existing price of the product. This allows you to pay for it in equal instalments over the fixed tenor. For instance, if a product is priced at ₹17,000, you may get it for ₹20,000 if you have opted for a no-cost EMI.

Depending on the financier, the tenor varies for repaying the loan. The easy EMI facility from Bajaj Finserv allows you to divide the product’s price into convenient EMIs that can be spread over up to 60 months.

While this EMI facility offers a convenient way to spread out payments, it’s essential to make informed decisions to protect your pocket. Here are some key factors to keep in mind:

• Ensure the monthly EMI payments align with your financial plan without compromising other expenses

• Confirm if the easy EMI offer applies to the exact product or model you desire

• Be aware of how opting for EMIs may affect your credit score

• Check if the lender allows early repayment without penalties, which provides you with more financial freedom

Opting for this financing option has many benefits. Some of these include:

To make high-value purchases without added interest charges, you can use the EMI card. Here is how to get an easy EMI facility using the Bajaj Finserv EMI Network Card:

1. Use this card to buy a product from any of the 1.5 lakh Bajaj Finserv EMI Network partner stores across 4,000+ cities

2. Select this card as the preferred payment method

3. Choose a suitable tenor and pay upfront charges if it is not available on zero down payment

4. Provide the OTP received on your registered mobile number during checkout to complete your purchase