Is your "no-cost" EMI really free?
The seller covers the bank's interest, but not the GST on that interest, the processing fee, or the discount you'd get for paying in full. Enter the offer to see what it really costs, and the yearly rate you're effectively paying.
Monthly EMI
Pay in full today
Total paid on EMI
Extra cash paid
Where the extra goes
Already juggling EMIs? Small EMIs add up. The EMI-Free Date Planner puts all your loans together, shows which to close first, and your exact EMI-free month.
See the planner · ₹199A banker's notes before you tap "No-cost EMI"
- "No-cost" means the seller pays the interest, not that the bank charges none. The bank lends you slightly less than the price and charges interest; the seller gives you that interest back as a discount. Your card statement will show the interest, and the discount, separately.
- GST on interest is the cost nobody mentions. Banks add 18% GST on the interest each month. On a ₹60,000 phone over 6 months, that's close to ₹500.
- The biggest cost is usually the lost discount. Many bank offers (instant discount, cashback) apply only to full payment, or the no-cost EMI price is higher than the price elsewhere. Compare the final price, not the EMI.
- Your full credit limit is blocked. The whole amount comes off your card limit and is released only as you pay. A high card balance can lower your credit score for a while.
- Pre-closing usually costs extra. Close the EMI early and the bank typically takes back the interest discount and may charge a foreclosure fee plus GST. Choose a tenure you'll actually complete.
- Paying by card in full is already interest-free for up to about 50 days, if you clear the full bill by the due date.