Nowadays, credit card EMI has become the most preferred option to buy expensive smartphones, TV, laptops or other items. Especially the offer of no-cost EMI attracts the customers a lot because it claims not to pay additional interest. However, sometimes such offers include processing fees, GST and other hidden charges, which can increase the total cost of purchase. In such a situation, before choosing the option of EMI, it is very important to understand its complete terms and conditions.
Credit card EMI has made it much easier for consumers to buy expensive products. With its help, instead of making lump sum payment, customers can pay the amount in small installments every month. This is the reason why the use of EMI in electronics, home appliances and online shopping has increased rapidly. However, the convenience of easy payment can sometimes motivate people to spend more than necessary. Financial experts believe that it is important to assess your paying capacity before taking EMI.
Credit card spending is increasing rapidly in India
Reserve Bank of India (RBI) data shows that credit card usage is continuously increasing in the country. Credit card spending crossed the Rs 2 lakh crore mark during several months in the year 2025. This shows that digital payments and credit based spending have increased. According to experts, with increasing usage the risk of debt also increases, especially when customers are unable to pay EMIs and credit card bills on time.
No-cost EMI is not always completely free
No-cost EMI sounds attractive, but in many cases its actual cost may be different. Many companies offer EMI by reducing the discount on the product or by adding the interest amount to the price. In such a situation, the customer feels that he is making a purchase without interest, while indirectly paying the additional amount.
Keep an eye on these hidden charges
Processing Fee- Many banks charge a one-time processing fee for starting an EMI. This fee may increase your total cost.
interest charge- In normal EMI schemes, banks charge interest on the outstanding amount, which increases the final payment amount.
Foreclosure charge- If you want to repay the entire EMI before the stipulated tenure, banks may impose pre-closure or foreclosure charges.
Impact of GST- GST is also applicable on processing fees, interest and foreclosure charges, which further increases the total expense.
What to do before taking EMI?
Before accepting any EMI offer, please check the price of the product on different platforms. Read the EMI terms, processing fees, interest rates and foreclosure charges carefully. If possible, calculate the total payment amount and see if the offer is really beneficial or not. Financial experts believe that EMI should be used only when its monthly installment is in accordance with your income and budget. EMI facility used with the right knowledge and caution can make the purchase easier, but a decision taken without understanding the terms can also put an additional burden on your pocket.
Leave a Reply