EMI financing options have become more and more popular these days. As such, a majority of financial institutions offer cards with which you can pay for your purchases in instalments. These instalments equal the full cost of the purchase and are spread over a tenure.
Paying in EMI can help, as you minimise the strain on your finances. Besides making big-ticket purchases manageable, you can get the products you want without compromise. The Bajaj Finserv EMI Network Card is one of the most popular financing tools, and with it you get the No Cost EMI option.
With No Cost EMIs, you can save on the interest usually levied in regular EMI options. However, there are a few factors that you need to know before choosing either of the EMI options. The interest levied by the card issuer is an essential factor to consider. Knowing this can help you make an informed decision and choose the best option.
To know more about theBajaj Finserv EMI Network Card interest rate structure and more, read on.
Bajaj Finserv EMI Network Card Interest Rate
You get regular and No Cost EMI options when choosing an EMI payment mode. In the case of regular EMIs, you have to pay the interest over and above the actual cost of the product. Simply put, while you pay for your purchase in EMIs, the card issuer levies an interest rate.
Here, the payment with an EMI card works similar to how you repay a loan you avail. The interest rate levied depends on various factors, including your purchase, and varies across card issuers.
With the Bajaj Finserv EMI Network Card, the interest rate is nominal or nil, thanks to the No Cost EMI option. This way, you can use the card to buy a range of products and pay only the actual cost. In some cases, a nominal processing charge may be applicable.
Benefits of Choosing the No Cost EMI Option
Whether you shop online or offline, most merchants offer discounts based on the payment option you choose. However, when you choose the No Cost EMI option, you get discounts differently.
Instead of offering a discount for the total payment, the merchant can ask you to pay the full amount in EMIs with no deal. As such, you are availing the discount as an interest waiver.
In any case, always remember that the issuer levies an interest rate on your purchase, but the merchant bears the same when you choose the No Cost EMI option.
Here is a tabular overview of how No Cost EMI works:
|Cost of the product||₹50,000|
|The total cost of the product||₹53,000|
|Interest borne by merchant||₹3,000|
|The final cost of the product||₹50,000|
Disclaimer: The figures are for representation only. Actual figures and computation can vary depending on the purchase.
From the above, you can assume the interest levied is 12% per annum for a tenure of 6 months, amounting to ₹3,000. Since the merchant bears the interest payment, your EMI amount will only be for the cost of the product, i.e., ₹50,000.
Depending on the tenure you choose, the EMI amount varies. With the Bajaj Finserv EMI Network Card, you can choose a tenure of up to 24 months to complete your repayment.
Things to Remember When Choosing the EMI Option
When you pay in EMIs, you essentially avail credit. That said, being careful when shopping on EMIs is crucial in securing your finances and creditworthiness.
Keep in mind the following points while opting for EMI payments:
- Check and compare the No Cost EMI option with a full payment option
- Assess if the EMI amount fits within your budget
- Change the tenure if your EMIs are affecting your monthly finances
- Compare the No Cost EMI options of various cards to choose the best option
- Check for additional discounts with the No Cost EMI payment
- Go through the terms and conditions to check the processing fee, if any
- Check if the purchase requires any down payment
Lastly, assessing if you need to buy the product is essential. Generally, the option to pay for your purchase in small amounts can make the product look more attractive, which may lead you to make purchases you may not need.
As such, you may accumulate a high credit amount you cannot pay on time or even get into a debt trap. So, make informed decisions when purchasing through No Cost EMIs or other financing options.
Where to Use the Bajaj Finserv EMI Network Card
You can enjoy the benefit of No Cost EMIs on over a million products. Here’s an overview of where you can pay with the Bajaj Finserv EMI Network Card.
- Partner stores: You can avail of the No Cost EMI option at over 1 Lakh partner stores, both online and offline.
- Online Shopping: Apart from partner store websites, the EMI card is also accepted at online shopping portals like Amazon, Flipkart, Goibibo, and more.
Now that you know how the Bajaj Finserv EMI Network Card interest rate works on the No Cost EMI option, consider these particulars when purchasing your favourite product. Remember to check your existing loans on the EMI card before availing a new credit. This way, you can manage your monthly finances efficiently.