If you have a Bajaj Finserv EMI card, you know what no cost EMI is. There are many credit card and financial institutes who offer no cost EMI on many gadgets. You only have to pay the cost of the product and no other fee or interest on the same.
But consumers who have brought a product on no cost EMI, are not sure if this moratorium is applicable for them too or not. So yes, you can easily use this moratorium too. But if you do that, you also have to pay a high rate of interest on your loan.
Bajaj Finserv has told that they are going to charge 24% per annum of the outstanding amount on the no cost EMI loans.
They will be increasing the tenure of loan to recover the loan.
The CEO of BankBaazar, Aadhil Shetty said- “Interest will be applicable for the no-cost EMI consumer durable loans if the moratorium is availed. The interest will be charged at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly.
“When you opt for ‘no-cost EMI’ schemes, depending on the product and the offer, you may not get certain upfront cash discounts associated with it. Else, depending on the products, offer, and issuer, you may have to make a down payment even if the loan availed is within your approved amount. In some cases, a processing charge may be involved as well,”
So it is advised to not apply for the moratorium if you can pay the loan.