Zero Cost EMI

Meaning :

Example : 

For example, acquiring a phone priced at ₹18,000 and opting to pay ₹1,500  per month over 12 months results in a total expenditure of ₹18,000, without incurring  any supplementary costs.

How to Understand Zero Balance Account : 

1.Conceptualize Zero Cost EMI as a mechanism for borrowing funds without the burden of  interest; the total amount remains constant, merely distributed across several months.

2.This payment option enables consumers to make purchases of high-value items without  the necessity of immediate full payment.

Importance of Zero Balance Account : 

1. Zero Cost EMI enhances affordability for expensive products by segmenting the total  cost into manageable monthly payments.

2. It mitigates the immediate financial impact of large purchases, allowing for better cash  flow management.

3. This payment method encourages strategic purchasing behavior, enabling consumers to  acquire desired items without undue financial strain.

4. It is especially beneficial for purchasing electronics, furniture, appliances, and other  high-cost investments, facilitating access to essential goods.