What is No Cost EMI and how does it work?

A No Cost EMI where you pay nothing over the purchase price.
What is No Cost EMI and how does it work?
5 min read
6 April 2023

No Cost EMI options have grown rapidly over the last few years, thus proving the popularity and convenience offered by this type of financing. By paying through EMIs, you split up your purchase cost over a long tenure, making it easier for you to manage your monthly budget. Today, retailers, and e-commerce websites offer two types of EMI schemes:

Regular EMIs: In a regular EMI scheme, you make a down payment, your financier pays the remaining product amount, and you repay the borrowed sum over the tenure at a fixed interest rate.

Interest-free EMIs: Under this EMI scheme, you shop via certain retailers online or offline, your financier pays the product amount, and you repay the borrowed sum over the tenure without any interest.

What is No Cost EMI?

No Cost EMI means a type of easy EMI facility where you can convert the cost of your products into EMIs and pay nothing over the agreed purchase price. With this EMI scheme, you incur no additional monthly EMI charges. No Cost EMI is sometimes also referred to as zero cost EMI or interest-free EMI. You can avail of No Cost EMIs at various online and offline stores using the Insta EMI Card.

How does No Cost EMI work

To calculate your monthly EMIs under the No Cost EMI scheme, you can simply divide your purchase price with the length of the repayment tenure.

For instance, you visit a partner store near you and decide to buy a television on No Cost EMIs. The amount you pay post discounts and processing charges is Rs. 1 lakh. To pay this amount you opt for a repayment tenure of 12 months. With this tenure and product cost, your monthly EMI will be Rs. 8,333.33 (i.e., Rs. 1,00,000/ 12 months).

What to look out for while choosing No Cost EMIs

Opting for a No Cost EMI option can be enticing, as it allows you to make big-ticket purchases without immediate financial strain. However, it is crucial to consider certain factors before availing of this option:

  1. Budget assessment: Assess your financial situation and ensure that the monthly EMI payments fit comfortably within your budget without compromising other essential expenses.
  2. Interest-free period: Confirm the interest-free period of the EMI option. Beyond this period, regular interest rates may apply, impacting the overall cost.
  3. Product value: Evaluate if the No Cost EMI option is available on the exact product you want to purchase. Some offers might apply only to select items.
  4. Credit score: Verify if opting for the EMI will affect your credit score, as it involves a financial commitment.
  5. Prepayment flexibility: Check if the EMI scheme allows for prepayment without penalties, giving you the option to clear the debt ahead of time.

Pros and cons of No Cost EMI

Pros Cons
1. Affordable monthly payments: No Cost EMI allows consumers to break down the cost of a product into smaller, more manageable monthly instalments. 1. Limited product selection: Not all products or retailers
offer No Cost EMI, limiting choices for buyers.
2. Interest-free: As the name suggests, there is no extra interest charged, making it a cost-effective way to make purchases. 2. Credit checks and eligibility: Eligibility for No Cost EMI may require a good credit score and may involve credit checks.
3. Budget-friendly: No Cost EMI helps consumers stay within their budget by spreading payments over several months. 3. Processing fees: Some retailers or financing companies may charge processing fees, which can add to the cost.
4. No need for a credit card: Unlike credit cards, No Cost EMI does not require a credit card, making it accessible to those without credit cards. 4. Complex terms and conditions: The terms and conditions for No Cost EMI can be complex, and consumers may not fully understand them.
5. Convenience: It is a convenient way to make high-value purchases without the need for a lump sum payment. 5. Limited retailers: No Cost EMI may only be available at specific retailers, limiting shopping options.

No Cost EMI can be a beneficial option for individuals looking to make big-ticket purchases while managing their finances. However, it's essential to be aware of the terms and conditions and choose this option wisely, considering the product, retailer, and personal financial situation.

Difference between EMI and No Cost EMI

EMI stands for Equated Monthly Instalment, which is a payment plan that divides the total cost of a purchase into smaller, equal monthly payments. No Cost EMI is a zero-interest instalment plan that allows you to pay for a product in monthly instalments without paying any extra interest or fees.
Interest charges are applied to the EMI, making it a more expensive option in the long run. The price of the purchase is divided into equal monthly instalments, and the total cost remains the same as the upfront payment.
Banks or credit card companies usually offer EMI options. No Cost EMI is an exclusive offer and is offered by brands or retailers, and NBFCs like Bajaj Finserv.

Where can I use the Insta EMI Card

You can use the Insta EMI Card at over 1.5 lakh+ partner stores across 4,000+ cities to buy 1 million+ products. Furthermore, the Insta EMI Card also offers you a card loan limit of up to Rs. 3 lakh.

Exclusive features of the Insta EMI Card:

  • A No Cost EMI where you pay nothing over the purchase price
  • Flexible EMI repayment tenure of 1 to 60 months
  • Card loan limit of up to Rs. 3 lakh
  • Shop for 1 million+ products across 4,000+ cities through the EMI Network
  • No physical documentation required

Eligibility criteria for the Insta EMI Card:

  • Age: 21 to 65 years
  • Nationality: Indian
  • Income: You must have a regular source of income
  • Credit score: You should have a CIBIL Score above 720

Check your pre-approved offer and get access to exclusive No Cost EMI deals.

How to avail No Cost EMI using Bajaj Finserv Insta EMI Card?

Bajaj Finserv Insta EMI Card is a great way to make purchases without burning a hole in your pocket. One of the most exciting features of this card is the No Cost EMI option. If you want to avail of this feature, here are some simple steps to follow:

  1. Check if the store you want to purchase from is a partner of Bajaj Finserv. You can do this by visiting the official website of Bajaj Finserv and using the store locator.
  2. Choose the product you want to buy and calculate the total amount you need to pay.
  3. At the payment counter, inform the cashier that you want to avail of the No Cost EMI option through your Bajaj Finserv Insta EMI Card.
  4. Swipe your card at the payment counter and select your preferred EMI tenure.
  5. The amount will be deducted from your card, but you will not be required to pay any interest or additional charges.


The Insta EMI Card is a fantastic financing option for anyone who wants to make purchases without breaking the bank. With easy-to-apply-for and fast approval procedures, the Insta EMI card puts the power of affordable purchasing right into your hands. It allows you to break down purchases into smaller, more manageable payments, and with the zero down payment options available, you can make the most of your card with minimum fuss. Also, the card comes with a wide range of features such as loyalty reward points and discounts on a range of exciting products. In conclusion, the Insta EMI Card is one of the most valuable financial products available on the market today.

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

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Frequently asked questions

Is there any interest charged when a product is purchased on No Cost EMI?

When you purchase a product using the Insta EMI Card on No Cost EMI, no additional interest is charged. You only have to pay the principal product amount in equated monthly instalments.

Is No Cost EMI better than regular EMI?

No Cost EMI is more beneficial than regular EMI, because under the No Cost EMI scheme, you don’t have to pay any additional interest on your EMIs. You can avail of No Cost EMIs using the Bajaj Finserv Insta EMI Card and shop for 1 million+ products from 1.5 lakh online and offline partners.

What is the minimum purchase amount to use the Insta EMI Card?

You need to spend at least Rs. 2,799 to use the Insta EMI Card and convert the cost of your purchase on No Cost EMIs.

What is an example of No Cost EMI?

No Cost EMI refers to an EMI scheme where you don’t have to pay any interest on your loan amount. For instance, you purchase a smartphone worth Rs. 10,000 using the Insta EMI Card and put the entire amount on 12-month EMI. Your monthly EMI will be Rs. 834 (10,000/12) with no interest on the principal amount.

What does No Cost EMI mean?

No Cost EMI refers to a payment option offered by retailers or financial institutions where you can make purchases and repay the amount in instalments without incurring any additional interest charges. The cost of the item is spread over equal EMIs, making it seem interest-free, but the actual cost remains the same.

Is No Cost EMI better than EMI?

No Cost EMI may seem better than regular EMI because there is no explicit interest charged. However, in reality, the interest cost is often built into the product price, meaning you may end up paying more for the item compared to paying upfront in cash or choosing regular EMI with lower product prices.

Is No Cost EMI a good option?

No Cost EMI can be a good option for those who have a budget constraint and cannot afford to pay the entire amount upfront. It allows you to spread the cost over several months without interest. However, it is essential to check if the product's overall cost is inflated to compensate for the interest-free facility.

Is 0 EMI really no cost?

No, 0 EMI is not really no cost. The product's cost might be inflated to incorporate the interest charges, making it appear interest-free over the EMI period. Always check the actual product price, compare it with the upfront payment option, and read the terms carefully to understand any hidden charges or fees associated with 0 EMI offers.

What merchant categories can the EMI Card be used for?

You can use the Insta EMI Card to shop from merchants across various other 1.5 lakh+ online and offline partner stores like

Is buying No Cost EMI worth it?

No Cost EMIs provide a great advantage by allowing individuals to spread their payments without incurring interest charges. This option makes high-value purchases more manageable, particularly for those who might not have the full amount upfront. It is a beneficial option for budget management, enabling people to acquire necessities or desired items without straining their finances. This method is especially advantageous when dealing with essential purchases, ensuring that individuals can afford items without the burden of substantial interest costs. Overall, it offers a practical and convenient way to make larger purchases accessible.

What are the differences between low cost EMI vs no-cost EMI?

Low-cost EMI involves paying interest on the loan amount, making the total cost higher than the product price. No-cost EMI, on the other hand, allows you to repay only the product price in instalments, with no additional interest charges, making the total cost equal to the product price.

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