Appliances on EMI: Buy Home Appliances at No-Cost EMI


Home appliances are a necessity for everyone. Buying home appliances, on the other hand, is difficult. It can be complicated to finance new home appliances. However, you can apply for a personal loan for home appliances.

Most loans are repaid using equated monthly instalments (EMI). Repayment processes involve paying the principal and interest amount in the form of equally divided payments in an agreed-upon period. However, there are two types of EMIs: regular EMI and no-cost EMI.

What is the difference between regular EMI and no-cost EMI?

Regular EMI entails paying back the principal amount and the interest. On the other hand, no-cost EMI involves paying back the principal amount only with no interest at all. For example, if you buy a TV set at INR 7,000 with an interest rate of 10% per annum. You will have to pay back INR 7,700. But with no-cost EMI, you will only have to pay back the INR 7000. This process allows you to save on the interest amount. 

Not sure whether you should opt for regular or no-cost EMI when applying for a personal loan for home appliances. Here are some advantages of No-cost EMI on a personal loan for home appliances.

Advantages of no-cost EMI

As mentioned above, no-cost EMI helps you save money on the interest amount, allowing you to get the product at the market price even if you do not have the required capital. However, this is not the only advantage of no-cost EMI on a personal loan for home appliances. Here are some more advantages of no-cost EMI:

They are better than other pay-later options.

Opting for a no-cost EMI is also more beneficial than other Buy Now Pay Later methods. The most popular of the latter is credit cards, which charge little interest if the dues are paid on time. However, the interest rate can go up to 40-50% of the due payment if the payment is delayed. 

As a result, when comparing these two payment methods, a no-cost EMI would be a better option for a personal loan for home appliances given the absence of interest on the payment. 

You can buy more expensive products.

By choosing no-cost EMI, you can purchase more expensive items. You do not need to compromise owning premium and desired appliances due to cash flow problems.

In addition, simplicity is also another advantage of no-cost EMI. You can get approved for a no-cost EMI loan. The process is very customer friendly. Also, there are no restrictions on how you spend the loan. You can spend the money taken as a loan on what you want. You can get multiple items instead of only one. This gives you greater flexibility regarding the loan.

So, considering a no-cost EMI for paying back the personal loan to buy electronics might be a good idea, in the long run, to avoid further expenses and keep your family and loved ones safe. 

The loan tenure is flexible.

The duration of a loan is of utmost importance. This is because it affects how fast you pay back the loan and how much of your monthly income is dedicated to that purchase.

When you choose the option of no-cost EMI for paying the personal loan for home appliances, you generally can choose among various tenure options of the loan. This is typically between 3 and 24 months. This puts you in the driver’s seat, and you can choose the option that suits you the best.

This option is not present when the payment is completed through a credit card. As a result, going for no-cost EMI to pay the personal loan for home appliances could be the way to go. 

They can help you build your credit score.

A credit score is one of the most important indicators to lenders when you are borrowing money. You ideally want to keep your credit score as high as you can. This will make loan approvals easier and allow you to get higher capital loans. 

No-cost EMI is one of the ways you can increase your credit score. You can take out small loans to pay back over time. It leads to a good credit history, which boosts your credit score, and you can get better loans. Personal loans improve your available credit-to-debit ratio.

Increasing your credit score through this method provides several advantages. The major one would be that compared to other ways of improving your credit score, this method does not involve paying any extra money through interest.

Who should select no-cost EMI?

The above-given section has already highlighted the advantages of no-cost EMI. The biggest advantage, as mentioned above, is that it helps you build good credit history. No-cost EMIs are an excellent option for those with a bad credit history but want to change that.

Using no-cost EMI, you are essentially not paying high interest as you would with credit cards. Therefore, if you have the finances to purchase an appliance, you can alternatively take out no-cost EMI loans and pay them back through EMIs. This builds good credit history, which would be beneficial when you apply for other loans.


Customer durable loans are personal loans for home appliances. You can buy home appliances using no-cost EMI. As this article has highlighted, there are benefits to using a no-cost EMI. No-cost EMIs make a loan more flexible and can help you increase your credit score.

In addition, you need to also compare the upfront cost with EMI options and access which suits your situation the best. Financial advisors such as Piramal Finance provide great insights into EMI and finances in general. Visit Piramal Finance now to learn more.