We’ve all been there – eyeing that shiny new laptop or the latest smartphone, but our bank account isn’t quite ready to make the full payment. That’s where the magic of No Cost EMI plans on credit cards comes into play! They promise to let you break down those hefty price tags into manageable monthly chunks, all without the dreaded add-on interest charges. Sounds like a dream, right? But before you dive headfirst into the world of No Cost EMIs, let’s peel back the curtain and uncover the truth behind this financial wizardry.

No Cost EMI

What Exactly is No Cost EMI on Credit Cards?

In the world of No Cost EMI, the name says it all – you get to pay for your dream purchase without any extra interest. It’s like borrowing money from your future self! But here’s the catch: there’s no such thing as a genuinely ‘No Cost’ EMI.

No Cost EMI

How Does No Cost EMI on a Credit Card Really Work?

In reality, the concept of ‘No Cost’ or ‘zero per cent interest’ is more of an illusion. The extra cost, which would typically be the interest, is cleverly concealed in one of two ways:

Scenario 1: Equating the discount to the interest

Imagine you’re eyeing that sleek smartphone with a price tag of Rs. 26,100, but you decide to go the No Cost EMI route. Brace yourself because you’ll end up paying the full price of Rs. 30,000. Yep, that sweet discount you were eyeing? It’s gone, sacrificed to cover the 13% interest on those EMIs.

Cost of phone: Rs. 30,000

Discount offered: Rs. 3,900

Cost of phone post discount: Rs. 26,100

Interest payable: Rs. 3,900

Total cost of the phone under the No Cost EMI credit card plan: Rs. 30,000

Scenario 2: Adding the interest component to the final product price

Let’s say you’re eyeing a fancy television that’s originally priced at Rs. 50,000. But under the No Cost EMI credit card plan, it’s yours for Rs. 56,500. Why the bump in price? Because the interest amount is slyly woven into the TV’s cost by the retailer.

Actual cost of the television: Rs. 50,000

Interest payable: Rs. 6,500 (13%)

Offer price under No Cost EMI credit card plans: Rs. 56,500

Total amount to be paid as EMIs: Rs. 56,500

Pros and Cons of Credit Card No-Cost EMIs:

Now that we’ve demystified No Cost EMI plans, let’s weigh the pros and cons before you decide to take the plunge:
No Cost EMI

  1. Shopping without upfront payments: No more breaking the bank with a single payment.
  2. Instalment payments reduce financial strain: Smoother on your wallet.
  3. Flexible tenure options: Choose a tenure that fits your monthly budget.


  1. Processing fees: Some lenders may charge non-refundable processing fees.
  2. Interest on returns: Even if you return the product and get a refund, you might still have to pay interest.
  3. GST on interest: Good old taxes apply to the interest amount.

Should You Opt for No Cost EMIs?

If you’re eyeing that big-ticket item or your wallet isn’t quite ready for a massive splurge, No Cost EMIs on credit cards can be your saviour. Plus, it’s an opportunity to build your credit history and boost your credit score. But, and here’s the golden rule, read those terms and conditions carefully. Know how the ‘No Cost’ element is being slyly recouped.

Get More than just EMI Benefits:

If you want to go beyond the EMI game and dive into the world of rewards, consider the Axis Credit Card on PickMyWork App.

So, there you have it – the insider’s guide to No Cost EMI plans on credit cards. They can be a handy tool for snagging those dream gadgets and easing your financial burden. Just remember, there’s no such thing as a completely ‘No Cost’ EMI. Be a savvy shopper, read the fine print, and enjoy your splurge responsibly!

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