Regular online shoppers must have come across two major incentives many retailers offer; instant discounts and no-cost EMIs. Both options make it easier for consumers to purchase costlier goods without disrupting their budget and finances. Retailers incentivize their customers to buy their products by giving them attractive deals. The customers get a direct upfront discount on a product in an instant discount. On the contrary, customers can purchase no-cost EMI phones and other products without paying any interest charges.
When used strategically, both these offers benefit the customers. Here, we will explain them and help customers choose the better one between them.
How Do Instant Discounts Work?
Instant discounts are lucrative deals for the customers looking to buy a product at a bargain. While making a purchase, the consumer gets the incentive amount immediately deducted from the product’s selling price. As a result, they can buy the product at a cheaper price than its market value.
How do No-Cost EMIs Work?
This arrangement is applicable only when an individual buys a product on EMIs. Purchasing an item on EMIs means borrowing money from the financier to fund the purchase and repaying it in installments. In return, the borrower pays interest charges, which is a percentage of the borrowed amount. However, in the case of a no-cost EMI plan, the financier does not charge any interest rate. Consequently, the consumer purchases the product by making a small down payment and pays the remaining amount in installments without paying any interest cost.
Points of Difference
Before deciding which one is better, let’s look at the points of difference between the two arrangements:
Parties Involved: An instant discount is a direct transaction between the customer and the retailer. The retailer offers the discount, and the customer avails it to purchase the item at a reduced price. However, in a no-cost EMI plan, a bank or NBFC gets involved in paying for the item upfront. In this situation, the customer purchases a product, the finance provider pays for it, and the borrower repays the amount to the financier in EMIs.
Card Requirement: There is no card involved in an instant discount. However, to opt for a no-cost EMI plan, the customer needs to enter their credit card details. These days, many financing companies also offer no-cost EMIs on debit cards.
Upfront Payment: When customers get an instant discount, they still need to pay the product’s discounted price while purchasing it. However, when they opt for a no-cost EMI, they can buy the item with a small down payment and pay the remaining amount to the financier in equated monthly installments.
Which One Will Work for You?
Since both arrangements benefit the customers in different ways, the consumers need to understand their requirements and decide which one suits them better. Those looking for an immediate benefit at the time of purchase must opt for an instant discount. It will allow them to buy an item at a discounted rate. However, those who want to buy an expensive item on a limited budget must go for a no-cost EMI option. With this option, they can purchase no cost EMI phones and other products with a small down payment and pay the remaining amount in easy installments.
Hence, choosing between an instant discount and a no-cost EMI boils down to the type of benefit the customer is looking for.