Why Banks Offer Higher Discounts on EMI Transactions Than …

For the customers, discounts add value. You get the same item for less. You would want to own credit cards that frequently offer discounts on your favourite apps or websites. Thus, such discounts increase the attractiveness of the cards in the eyes of the prospects. How many of us have signed up for Amazon Pay … See more

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Instant Discount Or No-Cost EMI: Which Is Better?

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Nov 30, 2020 · Let’s further assume that after opting for instant discount, you had to opt for a regular EMI at 13% (same as implicit interest rate for No-cost EMI). You get a discount of Rs …

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What Is The Catch With No-Cost EMIs - Reddit

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PS - Can pay in full. CC is only for discounts , points. Never missed CC payment. Pay full in 1st week of bill generation. Kept usage under 30%. Hello Need some advice . I bought a LG …

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EMI Credit Cards: How Do They Simplify Your Shopping Experience?

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1 day ago · EMI cards offer a host of benefits that include zero down payment, gift vouchers, reward points, discounts and cashbacks on purchases. Some cards offer cashback of 2.5% …

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Understanding No-cost EMI And Its Implications

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Jan 24, 2024 · Republic Day sale is here and so are the finance schemes including no cost EMIs and BNPL (Buy Now Pay Later).A closer look reveals no cost EMI plans tout 0% interest, but …

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FAQs about Why Banks Offer Higher Discounts on EMI Transactions Than … Coupon?

Does a no-cost EMI offer a discount?

The interest component can usually be seen as a discount in your bill when you opt for such a no-cost-EMI scheme. However, certain sellers may sometimes build the interest cost into the product’s actual price. ...

Can a bank afford a 10% EMI discount?

Well, the bank can afford to. The bank earns interest on the EMI transactions. That in a way makes up for the higher discount. Let’s consider an example. You want to purchase a product with a listed price of Rs 20,000. Your bank offers a 10% discount on outright purchase of Rs 10,000 and above. ...

How do retailers provide no-cost EMI?

This is the most common way for retailers to provide no-cost EMI where the applicable interest rate is offered as a product discount. For example, let us assume you want to buy a phone for Rs. 30,000. If you have a 3-month EMI plan and the interest rate is 15%, you are entitled to pay Rs. 4,500 in interest. ...

What is a no-cost EMI card?

Raj Khosla, founder and MD, MyMoneyMantra.com, said that a no-cost EMI card makes a pre-decided credit limit available to the customer to convert his purchases into EMIs. Since interest is indirectly included in the no-cost EMI by charging a higher price, there is no additional charge for the interest. ...

What are the advantages of no-cost EMI?

Advantages of no-cost EMI: No-cost EMI offers the customer the option to manage his or her cash flow constraints when purchasing high value goods. “We have a young and dynamic population that has more exposure, is earning more and constantly wants to upgrade their lifestyle. ...

Does a no-cost EMI offer discounts?

Yes, some retailers might offer additional discounts or cashback offers in conjunction with a no-cost EMI option, making your purchase even more attractive. However, in some cases, you can’t club the no-cost EMI option with discounts. ...