March 16, 2025 · 13 mins read
Santosh Kumar
No Cost EMI, also known as “Zero Cost Equated Monthly Instalments”, is a financing option offered to purchasers or buyers, allowing them to pay for a big purchase in equal Monthly instalments. These instalments do not contain any interest, and no interest is anyway charged during this process. The No Cost EMI is offered by multiple offline and online retailers who are in collaboration with Banks. The No Cost EMI, as claimed, may be available only on certain products. Discounts that may be available during a normal payment method option will not apply to the No Cost EMI option.
Although no interest rates are charged if a buyer opts for the No Cost EMI option, a processing fee shall be levied in the No Cost EMI option.
No cost EMIs are known to provide multiple benefits to users holding a credit card. Many users now prefer paying with no cost EMIs, Equated Monthly Instalments. Paying with EMIs is known to be the most convenient method of payment while making large purchases, without having to pay the entire amount in one go.
For products such as furniture, appliances and electronics, the “No-Cost EMI” offers are available. On retail websites, this feature is one of the most common features available for purchasers online.
Credit cards are now common among all age groups as it helps in managing finances systematically. Credits cards are also highly efficient when it comes to making hefty purchases. With EMI options available in credit cards, individuals can, in today’s time, make big-ticket purchases.
As the basic definition of the NO COST EMI for credit cards states, it allows users to make costly and hefty purchases via small monthly payments over a given period of time. In most cases, a certain percentage of interest is charged on the outstanding balance, which must be paid.
No processing fee or interest is applied on the feature of No Cost EMI as compared to regular EMI and EMI Schemes.
Terms and conditions must be read at least once, by buyers who are opting for the No Cost EMI option while making a heavy purchases as it may sound as good to be true, it indeed comes with a few catches so everything must be cleared before hand to no experience a mishap.
As they say, two sides to a coin. By selecting the No Cost Equated Monthly Instalment (EMI) option while making a big purchase on an e-commerce website there are multiple benefits to be able to opt for the No Cost EMI Option. A few benefits of No Cost EMI on credit cards are as follows:
Improvement in Lifestyle: With small monthly instalment payments, users are easily able to make big purchases on e-commerce websites which in turn helps improvement in lifestyle.
Zero Interest EMI: This was previously available for high-ticket products such as washing machines, or smartphones, travel tickets etc. No interest is charged for applicants although a processing fee is still levied.
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With a bunch of pros, cons come hand in hand. The No Cost EMI option sure does have quite a few benefits to offer, but a few disadvantages are important to be aware of before taking any financial step. A few disadvantages of the No Cost EMI are as follows:
Random buying Spree: with the No Cost EMI on credit cards, comes a freedom of spending irrationally which can be harmful for a few landing them into overspending on random products and expensive products.
EMI Payment on Time Failure: many users are noticed delaying their EMI payments due to lack of funds to pay or due to various other emergency cases.
Such disadvantages cause a turbulence in the relationship between the user and the bank and can lead the user to land in to legal trouble. Hence such features must be used only if the user hold enough funds to be paying back on time.
The Reserve Bank of India has raised stricter laws on Banks that offer No Cost EMI Credit Cards to Users. As per the RBI,
1: The concept of No Cost EMI is invalid due to the fact that the bank charges the user an interest which indirectly implies to a prominent fees.
2: If such fees is taken also, it will be redirected to the user in the form of cashback or one quick time discount.
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To Avail the No Cost EMI Credit Card option while shopping on famous e-commerce websites, the following steps must be followed:
1: The user is required to make a big purchase.
2: Once the product is selected and added to the cart, the user must select the No Cost EMI option and the plans available for that particular product.
3: From a list available, users are required to opt for their preferred bank and the tenure of the instalment.
4: Click on “Continue” and complete the process of placing the order.
5: In the payment mode, users are required to select the option “No Cost EMI”.
6: Details such as credit card number, and expiry date are required to be filled by the user upon which, an OTP will be sent to the user’s registered Email ID.
7: Once the OTP is entered, the payment shall be completed and the order is them made.
The above process is the same for all and any E-Commerce Websites such as Flipkart, Amazon, etc.
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A whole lot of Banks in India offer the option of No Cost EMI for buyers making hefty purchases on big and well-known E-commerce websites, and those banks are as follows:
1: Axis Bank
2: HDFC Bank
3: SBI
4: IndusInd
5: YesBank
6: RBL Bank
7: Kotak Mahindra
8: HSBC
9: Standard Chartered Bank
Before transferring credit card transactions to EMI payments, make sure the entire process is absolutely transparent. Before such conversions are done, make sure everything about the interest rate and discounts is clear.
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1: To apply for a No Cost Credit Card In India, typically Online, the buyer is required to head to a website and provide details such as Contact Number, PAN, or any other personal details to complete the KYC process.
2: Once the details have been entered and verified, an OTP will be sent to the user's registered mobile number.
3: There may be a one-time joining fee, depending on the bank.
To be eligible for No Cost EMI Credit cards, the users typically are required to have a credit card and not just that, the following speaks volumes about the factors that make anybody eligible to attain a No Cost EMI Credit Card:
Credit Card: A credit card is required to make a purchase and opt for the No Cost EMI Credit card option.
Participating Merchant: No-cost EMI Schemes are offered by retailers, merchants, and financiers, mostly in partnership with Banks.
Eligible Products: It has been noticed that not all products are available for
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1: If the user is unable to pay the No Cost Equated Monthly Instalments EMI, Banks may offer a restructuring plan. If, at present, the user is paying RS. 10,000 for a specified loan term per month, the bank may offer a lower EMI at a slightly longer tenure.
2: Not paying the EMI amount is a Civil Offense, not a criminal one. Lenders are allowed to file a lawsuit to recover the outstanding amount.
3: If, in any case, the reason for not paying the EMI instalments is genuine, there are rules and regulations to proceed with that process.
4: Negotiating with the lenders must also be considered if the user is unable to pay the EMI instalment.
The following are the consequences of delaying the EMI payment:
1: Users may be charged a late Fee, which in turn increases the total amount the user owes.
2: Late fees vary by lender and loan type. Typically, 2 to 5% of the outstanding EMI amount is charged as a late fee.
If the user continues to default on the payment or delay it, the lender is allowed to take legal action against the user. The lender is permitted to report the user loan account as a “Non-Performing Asset” to Credit Bureaus. Lenders are also permitted to sell or auction the collateral. The collateral can be real estate or jewellery, which can be utilized to recover the loan.
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The No Cost EMI Credit Card enables users to close the feature early but the user is required to pay up the balance amount. This process is also known as Foreclosure. For this process of closing down, the No Cost EMI Credit Card, also known as Foreclosure, may ask for an outstanding principal amount or an interest. These charges can vary from bank to bank.
To close the No Cost EMI Credit Card account, the user must contact the Bank to determine the exact process.
A few benefits that come with Foreclosure are as follows:
Saving on Interest: The user is enabled to reduce the total cost of the loan if the No Cost EMI Credit Card account is closed early. Along with reducing the total cost of the loan, users can save money on interest payments.
Improvement of Credit Score: Closing down the No Cost EMI Credit Card account early can depict responsible credit management and have a positive impact on the credit score.
Free Up Cash Flow: Once the No Cost EMI Credit Card account closes, users can empty their monthly cash flow for better financial planning.
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As per the majority of banks in India, the age limit for the feature No Cost EMI Credit Card is 21 years and above. The maximum age is 65 years. This is to determine the source of income and whether it's regular enough to pay for the EMI. A good credit score is also a factor considered in order to attain a No Cost EMI Credit Card. The individual applying for a No Cost Credit Card must strictly be a citizen of India, as per the Reserve Bank of India.
In 2025, India reached a whole new level in the digital world, from making payments digitally to applying for Equated Monthly Instalments EMI through e-commerce websites via credit card accounts. Making payments for making big purchases must not be thought about twice anymore. The No Cost EMI is an option available at the checkout for buyers to make instalment-based payments instead of making a payment of the entire amount at once. Banks like Axis Bank, IDFC First Bank, SBI, Kotak Mahindra and many more offer this feature. The buyer must have a card from one of these banks to avail of the EMI offers and advantages.
The Regular EMI does consist of an interest rate that the buyer is required to pay at the end of the EMI, whereas, in the No Cost EMI option, no interest is applied for the buyer to pay. Many big purchases such as furniture, electronics or appliances may make buyers feel hesitant about claiming the entire hefty product at once, and this entire process can get really demotivating and intimidating. Therefore, the No Cost EMI option fixed that section of your shopping Spree.
While there may be quite many advantages to paying with a No-Cost EMI, a few disadvantages may also occur. The No-Cost EMI feature builds a sense of overconfidence, which makes the buyer go on a random shopping Spree, overspending and then being unable to pay up, even monthly. Such risks must not be taken if a buyer is not capable of repaying; the idea must be dropped.
Having said all the above, closing down a No Cost EMI Credit Card can somewhat be benefital for users who cannot pay up their EMIs on time or are unable to manage the payments. Closing down the No Cost EMI Credit Card account early can be sensible credit management for the banks to help improve the credit score. By closing down the No Cost EMI Credit Card account early, no interest is required to be paid either, by the users, making them save in the interest amount. This entire process is also called Foreclosure.
Late fees, which range between 2 and 5% of the outstanding EMI amount, are applied to users' delayed payments. Lenders can take legal action against users for delayed payments.
Ans - The age limit in order to apply for a No Cost EMI Credit Card in India is mostly 21 years to 65 years. For a few banks, that may differ; 18 years to 65 years old are eligible for a No Cost EMI Credit Card.
Ans - One main rule for a No-Cost EMI Credit Card is that the buyer is not restricted from paying any processing fees or interest on the product purchased.
Ans - The maximum tenure for a No Cost EMI Credit Card in India usually ranges between 18 months to 24 months, depending on the bank.
Ans - The maximum tenure for Canara Bank’s No Cost EMI Credit Card is 3 months, 6 months, 9 months, 12 months, 18 months and 24 months.
Ans - The No-Cost EMI Card contains no processing fee, so users are recommended to go through the guidelines before applying for the No-Cost EMI Credit Card.
Ans - Users can close their No-Cost EMI Credit Cards early by paying the remaining balance at once. This is called Foreclosure.
Ans - No. Not paying the EMI in India is not a criminal offence but a civil one. Lenders can file a lawsuit and declare the loan account as a Non-Performing Asset (NPA).
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