Difference Between Zero Cost EMI & Standard EMI: What You Need to Know Before Buying Gadgets

Easy EMI options have made it simpler than ever to purchase high-end gadgets, such as smartphones, laptops, and smart TVs, without straining your finances. But as you explore different financing options, you’re likely to come across two popular choices, Zero Cost EMI and Standard EMI. While both allow you to break down the payment into monthly instalments, they function differently and impact your budget in unique ways.

Understanding the difference between Zero Cost EMI and Standard EMI is crucial before purchasing gadgets, especially when shopping for smartphones on EMI. Let’s explore what each of these means, how they work, and which option might be better for your financial situation.

What is a Standard EMI?

Standard EMI (Equated Monthly Instalment) is the most common financing option, where you repay the cost of a product, along with an interest amount, over a fixed tenure. The lender determines this interest rate based on your credit score, repayment history, and other financial indicators.

For example, if you’re buying a smartphone worth ₹30,000 on a standard easy EMI, you might end up paying an additional ₹1,500 to ₹3,000, depending on the interest rate and tenure.

Key Features of Standard EMI:

• Interest is charged on the product price.
  
• The monthly instalment includes both principal and interest.
  
• Available for longer tenure options (up to 24 months or more).
  
• More flexible in terms of purchase amount and categories.

What is Zero Cost EMI?

Zero Cost EMI means you only pay the actual price of the product in equal instalments, with no added interest. This type of EMI is usually available through partnered retailers or brands, where the cost of interest is covered either by the brand or the financing company. So, if you buy a gadget worth ₹30,000 with a Zero Cost EMI plan for 6 months, you pay ₹5,000 per month, with no extra charge.

Key Features of Zero Cost EMI:

• No interest or hidden charges.
  
• Tenure is usually shorter (3-6 months).
  
• Only selected products or brands are eligible.
  
• May include a processing fee in some cases.

Smartphones on EMI: Which Option is Better?

When it comes to purchasing smartphones on EMI, both options can be helpful depending on your needs:

• Choose Zero Cost EMI if you are certain of your budget and want to avoid paying any additional fees. This is a wise choice for gadgets with limited-time offers or fixed budgets.
  
• Choose Standard EMI if you need a longer repayment tenure or want flexibility in selecting brands or products. While it comes with interest, it allows better planning for high-ticket items.
  

With the rising cost of flagship devices, easy EMI plans, especially those offered via Bajaj Finserv EMI Network, make premium smartphones more affordable and accessible.

Tips Before Choosing an EMI Option

• Check the Final Payable Amount – Even Zero Cost EMI plans can come with hidden fees.
  
• Review the Tenure – Short tenures result in higher monthly outflows; ensure it fits your budget.
  
• Look for Special Offers – Many retailers offer zero-cost EMI on smartphones on EMI during festive sales or product launches.
  
• Compare Lenders – Use platforms like Bajaj Finserv to evaluate EMI options with zero or minimal charges.

Conclusion

When choosing between Zero Cost EMI and Standard EMI, consider your financial flexibility, budget restrictions, and how urgent the purchase is. While Zero Cost EMI helps you save on interest and maintain a tighter budget, Standard EMI offers greater accessibility and longer repayment periods.

With Bajaj Finserv’s extensive partner network and the easy EMI option, you can purchase a wide range of gadgets, from smartphones on EMI to home appliances, without waiting or compromising on your choices. It’s a hassle-free, transparent, and budget-friendly way to bring home your favourite gadgets.