Understand the cost
behind your purchase.
Compare cash discounts, bank processing fees, and transparent no-cost EMI subvention before you click checkout.
Good things to know
before you buy.
How e-commerce platforms structure interest discounts, credit card loans, and processing charges.
How does a 'No-Cost EMI' actually work in India?+
Per RBI directives, banks are prohibited from offering zero-interest retail loans. Under a No-Cost EMI scheme, the merchant gives you an upfront discount equal to the interest the bank will charge over your tenure. The bank finances the discounted amount and charges regular interest, making your net installment total equal to the original product price.
Why is there still a processing fee on No-Cost EMI?+
While the merchant covers the interest portion, the lending bank usually levies a standard EMI processing fee (typically ₹99 to ₹299 or 1% to 2%). This fee is charged directly to your first card statement.
When is paying in full better than opting for an EMI?+
If the retailer offers an instant cash discount, bank card cashback on full payment, or if the processing fees on the EMI plan outweigh the convenience of installment payments, paying upfront in cash or debit is the more economical decision.
Financial Disclaimer: Figures are simulated based on standard credit card reducing-balance compounding and merchant subvention models. Exact terms, processing charges, and merchant tie-ups depend on your specific card issuer. Read full Financial Disclaimer →