How Does No cost EMI Works – This and More on No Cost EMI


The ‘No Cost EMI’ scheme is emerging as a preferred approach for buyers to acquire big-ticket items that are otherwise unaffordable to them.

Flipkart first introduced nocost EMI finance plan, which was later on joined by various other eCommerce websites like This finance system enables purchasers to acquire high-value things online with EMIs, thereby reducing the problem of paying a massive amount upfront.


The initial thing that comes to our mind when we listen to the expression ‘nocost EMI’ is that it’s interest-free. No price EMIs include passion payments. This post solutions this concern and also talks regarding whatever you need to recognize about no expense EMI.

What is No Cost EMI?

No cost EMI is a finance plan supplied by sellers as well as stores by which you pay just the product rate in EMIs spread over your payment timeline.

How Does No Cost EMI Job?

This money plan works in 2 ways:


(a) When the discount rate equals interest:

This is one of the most typical means sellers offer no cost EMI. The rate of interest amount suitable is used as a discount rate on the product.

Let’s try to understand this concept with the help of an example:

Assume that you want to buy a phone that costs ₹30,000. In a 3-month EMI strategy, if the passion rate applied is 15%, you are qualified to pay a rate of interest quantity of 4,500. In no cost EMI scheme, you have to do away with the discount and pay the initial rate of the mobile phone in EMIs. If you select to buy the phone with a no price EMI scheme, you have to pay the full price of 30,000, which is split right into EMIs.

(b) When the passion quantity is contributed to the cost of the item:

We’ll take one more instance to understand this approach.
Allow’s claim you intend to get a product that costs 15,000. In a no cost EMI scheme, you obtain this item at 17,250. In this case, the interest (15%) quantity of 2,250 is included in the item pricethat is payable in EMIs spread out throughout a particular tenure. Sometimes, the interest component is covered as processing charges.

Benefits of No Cost EMI Offer

  • This finance system is supplied by top eCommerce sites such as as well as Flipkart. It does not matter which checking account you hold, whether it’s a credit card or debit card, you can benefit from this center.
  • No interest costs, extra costs, or down payments are required.
  • This plan is best during cheery period, where you require to go shopping in bulk while maintaining your spending plan undamaged.
  • This facility works in case of exchange supplies too.

When No Cost EMI is the Right Alternative?

  • You wish to buy a costly or popular item that you can not manage or it’s past your budget plan.
  • You don’t have the money to make payment upfront
  • You are getting a bargain.
  • You want to built your credit history and a quick small financing assists.

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