Understanding EMI Interest Rates Without a Credit Card in India

In India, the interest rates charged on Equated Monthly Installments (EMI) for purchases made without a credit card can vary significantly based on several factors, including the lender, the type of product, and the borrower's credit profile. This article will guide you through the understanding of these rates, highlight common scenarios, and discuss the options available for purchasing mobile phones on EMI without a credit card.

Factors Influencing EMI Interest Rates

The interest rates for EMI can range from as low as 10 to 25 percent per annum. The range of interest rates for personal loans or consumer durable loans typically sits at:

10-20 percent per annum for personal loans 12-24 percent per annum for consumer durable loans

These rates can vary based on the lender, the borrower's credit score, and the type of product financed. The actual interest rate will depend on additional factors such as the borrower's income, the borrowed amount, and the loan term length.

It is crucial for borrowers to read the terms and conditions carefully and compare offers from different lenders before committing to an EMI option.

Common Scenarios and EMI Options

EMI options are available for various types of loans, each with its own interest rate and terms:

Personal Loans

Typically, the interest rate for personal loans ranges from 10 to 20 percent per annum. The rate can vary based on the lender and the borrower's credit score.

Consumer Durable Loans

These loans are specifically for the purchase of electronics or appliances and usually have interest rates ranging from 12 to 24 percent per annum.

Zero or Low Interest EMI Schemes

Some retailers or financing companies offer promotional schemes where no interest or very low-interest rates are charged. These schemes might come with additional processing fees, which can affect the overall cost of the loan.

Buying Mobile Phones on EMI Without a Credit Card

One of the most compelling reasons for people to use credit cards is the ability to purchase mobile phones every month. To take advantage of the Bajaj Finserv No Cost EMI option, you can purchase premium mobiles that would have previously been out of reach.

However, for those who do not have a credit card, there are still several choices on the market that allow you to purchase high-priced mobile phones on EMI without using a credit card. These alternatives include both online and offline options that you can utilize to make purchases and pay for them in monthly installments that are easy to manage.

How Does It Work?

Buying something on EMI without using a credit card would almost certainly fall under a durable consumer or personal loan. In India, the interest rate for durable loans typically ranges from 13 to 20 percent per annum, although the actual rates vary based on the applicant's income, the borrowed amount, and the loan term length.

Typically, lenders will finance between 90 to 100 percent of the product price. You can get a loan for a variety of terms, depending on your specific needs.

No Cost EMI at Bajaj Finserv

If you purchase a smartphone on EMI in India without using a credit card and you have a Bajaj Finserv EMI Card, you will not have to pay any interest on the loan amount or face any processing fees or costs. There are also pre-approvals, and you can quickly convert the purchase price into a loan.

With the ease and flexibility of EMI options, customers can now enjoy the convenience of purchasing high-end electronic goods without the drawbacks of credit card use. Whether you're looking to buy a new phone or any other durable item, understanding the EMI interest rates and terms can help you make informed decisions and manage your finances effectively.