Business Standard

Planning festival-season shopping binge? Know how no-cost EMI and BNPL work

Experts advise close examination of no-cost EMI offers to uncover any concealed fees or charges

Photo: Bloomberg
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Photo: Bloomberg

Bindisha Sarang Mumbai
It is festival season, and many retailers are advertising various easy payment options — no-cost or zero-cost EMI (equated monthly instalment) schemes, buy now, pay later (BNPL), and so on. But are you sure you fully understand how these work? Before you avail of these attractive-looking options, there are a few things you should know about them.

No-cost EMI

No-cost EMIs involve an interest subvention between merchants and issuers of payment modes, enabling EMI options for buyers at zero effective interest.

Adhil Shetty, chief executive officer (CEO), Bankbazaar, says: "They give customers a double advantage. They get to buy a

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