No Cost EMI (Equated Monthly Installment) is a type of financing scheme wherein consumers can buy expensive products and pay for them in easy monthly installments with absolutely no extra interest payments. The scheme allows customers to buy those products which otherwise would have been too difficult to afford upfront. The concept of No Cost EMI has gradually gained traction in India as well as abroad, with many e-commerce platforms and retail stores now offering it as a mode of payment.
What is the meaning of No Cost EMI?
The No Cost EMI is a payment mode through which a person can plan to buy any product with the option of transferring payments over a fixed tenure without paying extra interest. Unlike normal EMIs where interest is charged on the outstanding sum, No Cost EMI maintains the same price and breaks up into equal monthly installments.
What Is the No Cost EMI Method?
Mechanics of No Cost EMI
Under a No Cost EMI plan, the seller or company pays off the interest cost on behalf of the consumer so that the latter pays for the product at retail price in monthly installments. The product’s cost sometimes does not change and thus the interest gets simply waived off, or it gets added to the product price. Here, sellers usually offer discounts or reduce the price to match interest costs.
Let’s say that one buys a product costing Rs 10,000 in No Cost EMI for 6 months and pays Rs 1,666.67 every month without a penny more or any interest on the product from the beginning. However, do note that the cost would have been higher if No Cost EMI didn’t exist.
Example of No Cost EMI Calculation
Let’s say you’re purchasing a Rs 12,000 smartphone through a 6-month No Cost EMI option.
Price of the product: Rs 12,000
Tenure: 6 months
Monthly EMI: Rs 12,000 ÷ 6 = Rs 2,000
Total amount paid over 6 months: Rs 12,000
The interest, which would normally increase the total price, is waived or absorbed by the brand or seller.
Benefits of No Cost EMI
- Affordability
With low monthly installments, No Cost EMI makes high-ticket items affordable.
- No Extra Charges
Interest is absent in No Cost EMI, which means that the customer pays only for the product priced at its original value.
- Convenience
This online shopping facility is backed by an installment payment that makes it easier for consumers to shop.
- Access to Expensive Products
No Cost EMI also opens up the premium and high-yield commodities that most will otherwise miss due to their excessive prices.
- Better Budget Management
No Cost EMI helps you manage your finances by spreading the expenses over a fixed period.
Who Is Eligible for No Cost EMI?
- Age
Applicants must usually be between 21-60 years.
- Employment Status
Employed individuals (salaried or self-employed) become eligible for the service.
- Credit Score
Approval chances are better for applicants with a good credit score, which is usually 750 or more.
- Minimum Income
Usually, a minimum monthly income is required by the lender or platform. This threshold varies amongst providers.
Things to know before selecting a No Cost EMI option
- Availability
Check whether the item is available for No Cost EMI.
- Hidden Charges
Confirm whether or not there are any processing fees or other charges that are not disclosed to the customer.
- Installment Tenure
Reconfirm the length of time of the EMI and what the monthly payment will be.
- Price Changes
Some No Cost EMI options may indicate lower prices for the base product, so check it against the original retail price just to be sure.
How to Apply for No Cost EMI?
- Pick Your Product
Choose the product you want to buy from a platform that offers No Cost EMI options, ensuring the product is eligible for such a payment plan.
- Check Eligibility
Find out the eligibility criteria like age, income, and credit score that you have to meet for the retailer, bank, or e-commerce website.
- Select EMI Option
Choose an EMI tenure like 3, 6, 9, or 12 months of EMI that suits your budget as well as ensures affordable monthly payment at the time of checkout.
- Fill Your Application
Provide required documents like ID proof, income proof, and address proof that may be required to verify your eligibility for No Cost EMI.
- Get an Approval
On processing the application, if you meet the eligibility criteria, you’ll receive an approval (or refusal) notice; if the application stands approved, the No Cost EMI option will be applied to your purchase.
- Pay Monthly Installments
Make your monthly payments, and ensure that the product price gets paid up within the chosen tenure so that there is no interest charged.
Best No-Cost EMI Providers in India (2025)
Banks
HDFC Bank
Offers Cost EMI for several products with multiple short- and longer-tenures and faster approvals for eligible customers.
State Bank of India
Provides No Cost EMI on selected products, with attractive features like low processing fees and easy documentation.
ICICI Bank
Easy EMI conversion is its forte. Besides, ICICI provides No Cost EMI on various products, both online and offline.
Axis Bank
Axis Bank allows No Cost EMI on various consumer goods with a seamless experience for its credit cardholders.
NBFCs
Bajaj Finserv
Provides No-Cost EMI on a massive selection of electronics and lifestyle goods while providing competitive financing alternatives.
HDB Financial Services
Offers No Cost EMI on various products, with low-interest rates and an easy approval process.
Home Credit India
A popular NBFC that extends No Cost EMI on all consumer durables, providing an easy and fast application process.
E-commerce Platforms
Amazon India
Provides EMI on a range of products encompassing electronics, home appliances, and gadgets with simple EMI options.
Flipkart
No Cost EMI plan offered by Flipkart allows the users to shop popular items spread across various categories like electronics, fashion, and home furnishings.
Snapdeal
It offers a No Cost EMI on selected products, mainly consumer electronics and home appliances.
Tata Cliq
No Cost EMI is offered on Tata Cliq on an assortment of premium products, including electronics, with flexible repayment tenures.
Frequently Asked Questions
1. Is there an unseen hidden charge on No-Cost EMI?
No, there is no hidden cost. However, you must take note of other charges such as processing fees.
2. Can I opt for No Cost EMI on any product?
No, No Cost EMI is made available only for selected products and platforms.
3. For how long is interest waived in No Cost EMI?
The interest is usually paid by the seller or brand company and is either waived for that reason or already factored into product pricing.
4. Would a low credit score prevent me from applying for a No Cost EMI?
Though it may lower your chances of approval, the final decision depends on the platform or lender.
No Cost EMI is a great way to ease making large purchases without incurring additional costs. Customers can thus buy premium products with an easy installment option. However, it is essential to compare various No Cost EMI options and providers before heading into a decision.
