A card EMI looks easy on big purchases, but not every EMI is cheap. Check these points before you take one.
When it is fine:
1. When there is no interest on the EMI and no extra charges.
2. When a bank offer gives a good discount and you can pay the instalments on time.
3. When the instalments fit your budget comfortably.
When to be careful:
1. Ask about both the interest rate and the processing fee. Sometimes the fee and GST on it are charged separately.
2. In some "no-cost EMI" plans, the interest amount is deducted from the discount. So look at the total you pay, not only the instalment.
3. Missing an instalment can bring penalties and affect your credit score.
4. Your card limit also gets blocked by this EMI.
5. If you can pay in full and the cash price is lower, that can be the cheaper option.
Always calculate "how much will I pay in total". Our tool helps with this.