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 is 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).

Where can I use the Insta EMI Card?

You can use the Insta EMI Card at over 1.2 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. 2 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 3 to 24 months
  • Card loan limit of up to Rs. 2 lakh
  • Shop for 1 million+ products across 3,000+ 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.

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 1.2 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.

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