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What is Zero Interest EMI and is it suitable for your portfolio?

An equal Monthly Installment Scheme or an EMI is a kind of loan that permits us to make fixed monthly payments over a fixed period of time. A zero-interest EMI is a bit different and helps you to buy expensive products with almost no interest. So, EMIs are a great option when it comes to buying something but without investing a lump sum amount all at once.

But, when you opt for the regular EMI plan, you need to sign up for repaying the product price with a huge rate of interest over a fixed period like the part of each installment. But, here no-cost EMI is best since you do not have to pay any interest on the amount. But, first, you have to know what you can buy with this and how it can affect your credit score. However, to give you a clearer knowledge about it, we will discuss it below.

Different Kinds of Zero Interest EMI

Generally, there are two kinds of no-interest EMI available; one is online and another is offline. In most cases, when you opt for the zero-cost EMI option, you have to give up the discount you can get by paying upfront for the purchase. The seller then further gives the discount payment to the financial institution to cover the amount of interest. In simple words, the interest amount is already included in the price of the product.

In the other method, a processing fee must be given for the same. Here, you need to pay the processing fee to avail the zero-interest EMI facility. This procession fee is actually the amount of interest. Since the primary aim of Spare8 is to simplify the investing process, you can some tips here on how to strategically move forward to get the actual benefit in the long run.

What One Can Buy with No-Cost EMI?

No-cost EMI is mainly a marketing strategy of the retailers. Hence, the retailers always market their best-selling products with no-cost EMI credit to attract more people towards it and make them buy the products from their stores. Therefore, sometimes people think about what to buy from zero-interest EMI after getting trapped in marketing gimmicks.

So, with the help of the no-cost EMI, people can purchase expensive products like TV, refrigerator, washing machine, mobile phone, Air conditioners, etc. When people cannot afford a lump sum of money at once, it is best to opt for a no-cost EMI to purchase their favorite products without hassle.

Additionally, now you can also purchase other items like apparel, furniture, cosmetics, jewelry, etc. So, consider downloading the Spare8 app to know more about the long-term benefits of no-cost EMI and how taking loans with no-interest EMI brings advantages to the customer.

Does No-Cost EMI Affect Our Credit Score Portfolio?

No-cost EMI is a very alluring scheme that every financial institution like banks offers to their customers. Banks offer this facility because the processing fee on this kind of credit is generally much higher than the conventional credit. Also, every customer generally sticks to this kind of credit for a longer period.

People often think about whether zero interest EMI and portfolio of credit score have any kind of connection. Well, the thing here one with a credit score below 700 won’t get the opportunity to apply for a no-cost EMI. So, yes, in a way they both are connected since your credit score matters here.

However, it is crucial to understand how long the loan term should be, as delinquent payments can further affect your credit availability. Apart from that, it is mandatory to make the payment of EMI on time. Otherwise, it can affect your credit score and that can impact zero interest EMI on the portfolio negatively.

Hence, to maintain a good portfolio is necessary to avoid giving late fee penalties. So, start conducting proper research so that you will get the strategy on how to maintain a good credit score portfolio easily to avoid unnecessary issues.

Should You Opt for Zero-interest EMI?

Before purchasing products with zero-interest EMI, you must know if you really need them right now. It is indeed an alluring option and it can give benefits. But people often end up purchasing items that they do not want at that moment. One thing you must keep in your mind is that you must check whether any hidden charges are mentioned to avoid unnecessary problems in the future.

Also, it is advisable to conduct proper research before applying for a no-cost EMI to maintain your credit score portfolio. Besides, it entirely depends on you whether you want to purchase expensive things at a comparatively high price than their actual price.


No-cost EMI is mainly a form of financing that helps customers to pay for an item in monthly installments if they cannot afford to pay a lump sum amount all at once. As a customer, you must be aware of the applicable charges on the zero-interest EMI as well.

However, if you download the app of Spare8, you get all the details of no-interest EMI and how you can strategically move forward after applying for no-cost EMI to avoid any negative effect on your credit score portfolio.

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