Archive · 11 Oct 2026
No-Cost EMI Offers May Hide Costs for Online Shoppers
No-cost EMI lets you pay for a purchase in smaller monthly amounts.
But “no-cost” does not always mean the product costs the same as it would with an upfront payment.
A shop might remove a discount when you choose EMI.
That missing discount can cover the interest charged by the lender.
In other cases, the interest may already be added to the product’s price.
A processing fee may also be charged.
The article says EMI can help when a costly item is beyond your current budget.
It advises shoppers to check for extra costs before choosing a plan.
No-cost EMI lets shoppers spread payments, but it does not always eliminate the cost of borrowing.
Some retailers withhold a discount equal to the interest that the bank or finance company charges.
In another arrangement, interest may be built into the product price or collected as a processing fee.
The article compares a ₹30,000 smartphone discounted to ₹25,500 with an upfront payment, where the discount may not apply on EMI.
It also describes a ₹15,000 product priced at ₹17,250 under EMI, with three monthly instalments of ₹5,750.
- Who
- Online shoppers considering no-cost EMI for gadgets, appliances, and other high-value purchases.
- What
- An explanation of how no-cost EMI may involve a forgone discount, interest added to the price, or a processing fee.
- When
- During online festive sales; no specific date is given.
- Where
- Online shopping platforms, including Myntra, Amazon, and Flipkart.
- Why
- To explain that advertised no-interest EMI plans may still carry costs for buyers.
- First example
- A smartphone priced at ₹30,000 is available for ₹25,500 with an upfront payment; the ₹4,500 discount may not be available with no-cost EMI.
- Second example
- A product costing ₹15,000 is offered at ₹17,250 under a no-cost EMI plan.
- Example instalment plan
- The ₹17,250 price would mean three monthly instalments of ₹5,750.
- Possible cost structure
- A discount may be withheld to cover interest payable to the financier.
- Another possible cost structure
- Interest may be included in the product price, or the remaining cost may be charged as a processing fee.
- Source cited
- The article attributes the explanation to a blog post by credit bureau CRIF High Mark.