An EMI where the seller gives a discount equal to the interest, so the instalments add up to the price.
Interest is still charged by the bank; the seller or brand gives an upfront discount of the same amount. You usually still pay 18% GST on the interest and often a processing fee, so a no-cost EMI is rarely completely free.
It also means giving up any cash discount you would get by paying in full.
Short reads that explain how it works before you decide.
GuidesNo-Cost EMI: What It Really Costs You, With a Worked ExampleNo-cost EMI is not a trick, but it is rarely free. Here is where the money goes: the discount you give up, the processing fee, and GST on the interest, worked out on a Rs 30,000 phone.Read the guide →Automatically organise your spending, track expenses and understand where your money goes.
