Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • No Cost EMI on Credit Cards

    Credit cards can be helpful when you have to make some big purchases. With the EMI options that come with many credit cards, you can easily make big-ticket purchases. There are a lot of Banks that offer credit cards with no-cost EMIs. With no cost EMI credit cards, users can purchase gadgets without worrying about down payment, processing fee, etc.

    How does the No-Cost EMI Scheme Work?

    • In case of regular EMIs, the seller charges you a processing fee which ranges between 0.5% to 3% and an interest rate that can vary from 8% to 15%. For instance, if an individual has bought a product worth Rs.12,000 and has availed a standard EMI option of 6 months, the breakup of their payment will be as follows:
      • Tenure of EMI= 6 months
      • Principal sum= Rs.12,000
      • Rate of Interest= 12%
      • Processing Fee=2%

    So, each month, the buyer has to pay Rs.2,157. They will be charged an interest worth Rs.441 and a processing fee of Rs.250. Hence, the buyer has to pay a total amount of Rs.12,691.

    • In case of no-cost EMIs, the buyer doesn’t have to pay any processing fee or interest on the product purchased. For instance, if an individual has bought a product worth Rs.12,000 and has chosen an EMI tenure of 6 months, they will have to pay Rs.2,000 per month. The total interest and processing fee charged will be Rs.0. Hence, the total amount that the buyer has to pay is Rs.12,000.

    Reserve Bank of India’s Rule on No Cost EMI Credit Cards

    RBI has put stricter guidelines on banks that offer No cost EMI credit cards to its customers. According to the RBI, the concept of No cost EMI is invalid, as the bank charges the customer with interest indirectly in the form of processing fees. Many merchants also include the interest fee in the price of the product, which as per RBI is fraudulent. This is the reason why many major banks charge interest on a monthly basis and then refund it to customers in the form of a cashback or a one-time quick discount.

    No- Cost EMI Benefits

    The various benefits of No-Cost EMI are mentioned below:

    • Allows an improvement in lifestyle with the ability to pay for expensive products with monthly installments.
    • Zero-interest EMI, which was previously only accessible for high-ticket items like smartphones, washing machines, and laptops, is now available for other products like furniture, cosmetics, travel, etc.

    No-Cost EMI Disadvantages

    The various disadvantages of No-cost EMI are mentioned below:

    • A Low-Cost EMI credit is similar to a No-Cost EMI credit. Customers could end up paying far more than they would have if they had paid cash.
    • A no cost EMI can result in random buying spree that can be harmful for the customer.
    • Failing to pay the EMI on time might result in a negative credit score.

    Process To Avail a No-Cost EMI

    While shopping online, individuals can avail a no-cost EMI while buying expensive gadgets, furniture, appliances, lifestyle accessories, among others. However, at brick-and-mortar stores, this finance scheme is applicable only on gadgets, appliances, and furniture. Listed below are the procedures that a buyer needs to follow in order to avail a no-cost EMI:

    Process to Avail No-Cost EMI While Shopping Online

    While shopping online for gadgets and appliances on websites like Flipkart and, the buyer has to follow the steps listed below:

    • Select the product they want to buy.
    • They will need to check if that particular product has no-cost EMI options available.
    • If the product has EMI options available for its purchase, the buyer will need to go through all the instalment options available.
    • They will need to select the EMI option that they think will suit their finances on the payment page.
    • Next, they will need to enter their credit card details including the card number, name on the card, expiry date, and the CVV number.
    • Once they proceed with the checkout, the principal amount will be blocked on their credit card.
    • They will receive a complete breakdown of the payment details on their registered email id.

    Process to Avail No-Cost EMI while Shopping Offline

      While shopping in brick and mortar stores for expensive gadgets, furniture, and appliances, the buyer has to follow the steps listed below:

    • Once they have selected the product that they want to buy, the buyer will need to select the EMI option that they want to avail. The EMI options available in stores is 3, 6, 9, and 12 months.
    • Next, they will need to fill out a form with details like their name, contact number, address, the EMI option that they want to avail, and their signature.
    • They will also need to submit copies of one proof of identity and proof of address along with the form.
    • Once the documentation is done, they will be allowed to take the product home.

    Online Stores that Offer a No-cost EMI Option

    Individuals who want to make a big-ticket purchase using the no-cost EMI option online can do it by buying the gadget or appliance on Flipkart or Amazon India. These two online stores provide the no-cost EMI option for their customers so that they don’t have to burn a hole in their pockets while making the purchase. Let’s take a look at how Flipkart and Amazon India’s no-cost EMI option functions:

    No Cost EMI Online on Flipkart

    The online shopping giant has tied-up with 13 different banks to offer this finance scheme to its customers. However, this option is available on a list of products only. There is no additional interest or processing fee charged on the product by Flipkart. For instance, if an individual buys a refrigerator for Rs.18,000 and chooses to pay the money back in 9 instalments, they will need to pay Rs.2,000 for 9 months. There will be no extra costs involved in the transaction. Listed below are the steps that one needs to follow to avail the no-cost EMI option on Flipkart:

    • Once they select the product, they will need to search for the "No-Cost EMI" option that will be listed on the right hand side of the page and under the offers section.
    • Under the "No-Cost EMI", they will get to see the plans that are available for that particular product.
    • Next, from a list, they will need to select their preferred bank and the tenure of the instalment.
    • Then, they will have to click on the "Continue" tab and place their order.
    • In the payment mode, they will need to select "No-Cost EMI."
    • Next, they will need to enter details like their credit card number, expiry date, and the OTP that will be sent to them on their registered email id.
    • Once, they enter the OTP, their transaction will be completed.

    No Cost EMI Online on Amazon India

    The Indian branch of the US e-commerce website Amazon, offers a no-cost EMI option in partnership with 11 different banks, namely, Standard Chartered, Axis Bank, HDFC Bank, Yes Bank, HSBC, Kotak Mahindra Bank, SBI, RBL, and on EMI card provided by NBFC (Non-banking Financial Company). While purchasing a product on that has a no-cost EMI option available, the buyer will not have to pay any additional costs. For example, if they are buying a television for Rs.21,000 that comes with the option of no-cost EMI and they choose to make the payment in 9 instalments, they will have to pay Rs.3,000 for 9 months. Hence, they will end up paying Rs.21,000 which is the exact amount borrowed. However, doesn’t provide this facility for an EMI tenure of more than 12 months. Listed below are the steps that one needs to follow to avail the no-cost EMI option on

    • Buyers will need to select the product that they need to buy and check its eligibility for no-cost EMI.
    • Once they check the eligibility, they will need to select the tenure of their EMI.
    • After that, they will be directed to the payment page.
    • On that page, they will need to type in the details of their credit card including the number of the card, name on the same, expiry date, and CVV number.
    • Once they furnish the above-mentioned details, their transaction will be processed.

    Offline Stores that Provide No-Cost EMI Option

    Apart from online stores like Flipkart and, a lot of brick and mortar stores also provide a no-cost EMI option on mobiles, furniture, appliances, amongst an array of products that the customers can choose from. However, at some of these stores, the customer would need to fill out a form and submit a couple of documents while availing this option. Once the documentation is fulfilled, customers will be able to take home the product they want to. However, most of these stores have a minimum purchase amount that the customer needs to fulfil in order to avail the no-cost EMI option. Listed below are some of the stores and retail outlets that offer a no-cost EMI option on gadgets and appliances to their customers:

    1. Croma
    2. Big Bazaar
    3. eZone
    4. Central
    5. Vijay Sales
    6. Brand Factory
    8. The Raymond Shop
    9. AP Electricals
    10. Aakarshan Electronics and Home Appliances
    11. Aanjaneya Enterprises
    12. Acme Fitness Private Limited
    13. Aditya Birla Retail Limited
    14. Akshya Electronics
    15. Jai Durga ELectro World LLP
    16. Jubilant Agri and Consumer Products Ltd
    17. Kusuma Enterprises
    18. Kundan Electronics
    19. Mahesh Electricals
    20. Reliance Digital
    21. Sangeetha Electronics
    22. SBR Enterprises
    23. Thomsun Music House
    24. UNI Air Systems
    25. Unilet Appliances PL

    Participating Banks for No-cost EMI Scheme

    There are quite a few banks in India that offer no-cost EMIs for consumers who want to buy gadgets and appliances online as well as from brick-and-mortar stores. Listed below are the names of the banks that offer this facility:

    1. Axis Bank
    2. HDFC Bank
    3. SBI
    4. IndusInd
    5. Yes Bank
    6. Kotak Mahindra Bank
    7. RBL Bank
    8. HSBC
    9. Standard Chartered Bank

    FAQs on No Cost EMI on Credit Cards

    1. Will I have to pay a down payment in order to avail a no-cost EMI?

      While availing the no-cost EMI facility, you will not have to pay any down payment, processing fee, or an interest.

    2. Will my bank charge an interest?

      Yes, the bank will charge you an interest. However, the interest that they charge will be given to you upfront as a discount at the time of buying the product. So, this way, they give you a benefit of no-cost EMI.

    3. How long does it take to process the EMI?

      It takes 3-5 working days for the seller to process the EMI option chosen by you.

    4. Is the no-cost EMI option available on all the products that the seller has?

      No, this option will be available on selected products only.

    5. While shopping online, will I be given a no-cost EMI option on exchanging an old product to purchase a new one?

      Yes, you can avail the same on exchanging products as well. However, the EMI amount will be calculated on the basis of the amount that will be reduced.

    6. In case I have opted for the FinBooster: Yes Bank - BankBazaar Co-branded Credit Card, will the No Cost EMI option be provided?

      You will need to contact YES Bank’s customer care to check if the No Cost EMI facility is available on the FinBooster: Yes Bank - BankBazaar Co-branded Credit Card.


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