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What "No Cost EMI" means and How it Works

By Finserv MARKETS - Jan 27,2020
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For decades the system of equated monthly instalments (EMIs) has allowed consumers to get easy access to credit and purchase everything, from microwave ovens to homes. While EMIs have been greatly responsible for the success of retail loans in the banking industry, No Cost EMIs have been a game changer for the retail industry, especially for online retailers or ecommerce platforms and marketplaces.

However, Bajaj Finserv has made no cost EMIs popular even among offline retailers and buyers with the Bajaj No Cost EMI Card. With the Bajaj No Cost EMI Card you can go for Bajaj EMI card online shopping at the Bajaj Finserv EMI Store and browse, compare and purchase thousands of lifestyle items, electronics, gadgets and financial products. You can pay for these products using easy and attractive No Cost EMI schemes. The Bajaj Finserv EMI Store uses a hyperlocal approach, which means you can purchase the product from the online store using your Bajaj No Cost EMI Card and get it delivered to your home within 24 hours from a local merchant. What’s more, you can even use your Bajaj Finserv EMI Card to purchase items available offline with its large band of 84,200+ partner stores across 1,300+ cities across the length and breadth of India.

No cost EMIs not only allows customers from bigger cities but those from smaller towns to purchase electronics, gadgets, home appliances, mobile phones and apparels without paying high-interest rates.

But what does “No Cost EMI” mean and how does it work? Let’s understand.

1. What is No Cost EMI?

In simple terms, no cost EMI means that you don’t have to pay any interest on the loan that you have taken to purchase a particular product. When you purchase an item at no cost EMI, you don’t have to pay anything over the price of the product divided into easy instalments.

For example, if you have purchased a smartphone worth Rs. 12,000 with a Bajaj No Cost EMI Card and decided to pay in 6 instalments, you don’t have to pay anything more than Rs. 2,000 per month for the next 6 months.

However, according to an RBI circular in September 2013, lenders are not allowed to market consumer loans and EMIs with 0% interest rate. Since then, merchants and lenders provide no cost EMIs by deducting the total interest amount charged for the loan from the price of the product.

2. How does no cost EMI work?

Assume that you purchase a smartphone worth Rs. 25,000 at the Bajaj Finserv EMI Store at No Cost EMIs for 6 months. If the total interest that you pay for the purchase is Rs. 2,000, you have to pay only Rs. 23,000 (Rs. 25,000 – Rs. 2000) for the smartphone. Hence, instead of providing zero interest rate on your EMIs, with Bajaj EMI card online shopping you are provided discount on the product prices equivalent to the interest costs on the purchase. Sometimes, this no-cost EMI is provided in the form of cashback to the customer.

3. Benefits of No Cost EMI

No cost EMI option is gaining increased popularity today among customers due to the ease and affordability of making payments. At the Bajaj Finserv EMI store and according to reports when Bajaj Finserv has partnered with ecommerce platforms such as Amazon and Flipkart, 25-50% of shoppers prefer buying products through the no cost EMI option.

No cost EMI offers customers the following benefits:

  • You don’t have to worry about paying upfront for purchasing a high-value home appliance, gadget, smartphone or other lifestyle products.
  • In regular EMIs, you have to pay extra as interest costs, if you increase the tenure of your loan plus processing charges. With no-cost EMI, you can avoid paying excess on your purchases, even when you spread instalments over a longer period or tenure and face a minimal amount of processing fees.
  • With a Bajaj No Cost EMI Card, you can make purchases without a credit card and a specific amount is already approved on the card, so you don’t have to apply for a loan either.

4. Features and benefits of a Bajaj Finserv No Cost EMI Card

With a Bajaj Finserv Card, which is a digital card, you can make purchases anywhere and at any time. The Bajaj No Cost EMI Card comes with a preapproved loan of Rs. 1.5 lakh so you are free to do plenty of shopping online or offline. The card comes with more than 1,000 exclusive Bajaj Finserv EMI Card offers and zero foreclosure charges.

The Bajaj Finserv EMI digital card enables you to shop over 1 million products like  Smartphones, LaptopsTelevisionsWashing Machines and many more at no cost EMIs at 84,200+ Bajaj Finserv partner stores. You can also use this digital card to shop on online portals such as the Bajaj Finserv EMI Store, Amazon, MakeMyTrip, Flipkart, Yatra, Paytm Mall, Samsung, Pepperfry, Goibibo, etc. The application process for obtaining a Bajaj Finserv EMI Card is simple, smooth and speedy.  For the Bajaj Finance Card Apply online option, all you need to do is fill in the application form, pay a one-time fee, visit one of Bajaj Finserv’s partner stores and get your KYC done! You’re all set for no-cost EMI purchases! Once you fulfill the required eligibility for Bajaj EMI Card, your favourite electronic gadgets and products are only one click away!

To read more interesting blogs, check out: Bajaj Finserv EMI Card-Everything You Need To Know , Bajaj Finserv EMI Card Vs Credit Cards , Bajaj Finserv EMI Card Offers and many more!

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.


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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522