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No Cost EMI: How it Works?

EMI, which stands for Equated Monthly Instalments, is a method of paying an outstanding loan availed against a purchase. It involves a down payment against which the financier pays the remaining amount as a loan, for a specific period, over an agreed rate of interest. 


The total amount to be repaid then includes the principal loan amount and the interest on the loan. This is equally divided and paid back in monthly instalments over a stipulated time frame. In this regard, what does No Cost EMI mean?


While regular EMIs require you to pay the actual amount borrowed along with the interest accrued on that amount, No Cost EMIs let you pay only the principal amount borrowed. 


Simply put, this financing option calculates your EMIs by dividing only the purchase price by repayment tenure without including any additional charges.


Depending on the financier, the tenure varies for repaying the loan. The No Cost EMI facility from Bajaj Finserv lets you divide the product price into convenient EMIs that can be spread over a tenure of up to 60 months, depending on your preference.

How to Avail Zero Cost EMI Using the EMI Card?

You can avail the No Cost EMI facility using a debit or credit card that offers the feature. Alternatively, you may use an exclusive zero cost EMI card such as the Bajaj Finserv EMI Network Card


You can use the Bajaj Finserv EMI Network card at any of the partner stores. This No Cost EMI deal is applicable in any of the 1.5 Lakh+ Bajaj Finserv’s partner stores across 4,000+ cities.


The scheme allows you to shop for over one million products on equated monthly instalments (EMI) with no additional interest, down payment or processing fee. 

FAQs on No Cost EMI: How Does it Work

How is a No Cost EMI deducted?

When you buy a product, you need to repay the principal amount (the actual price of the product) in staggered instalments without any interest added. This is how a No Cost EMI is deducted.

How does a No Cost EMI actually work?

To understand the No Cost EMI meaning and how it actually works, know that there is no need to pay any cash upfront when you purchase any product.


Instead, the principal amount of your product is split into monthly instalments (EMIs) that you pay over a flexible tenure. ‘No Cost’ means that along with the monthly instalments (EMIs), interest is not charged. 


Besides this, financers do not charge any processing fees.

What is an example of a No Cost EMI?

No Cost EMI is a payment facility wherein you do not need to pay any interest on your loan amount. For instance, if you buy a smartphone valued ₹10,000 using an EMI card and opt for a 12-month EMI plan, your monthly instalment will be ₹834 with no additional interest charged on the principal amount.

How to get a No Cost EMI using an EMI card?

The Bajaj Finserv EMI Network Card is an exclusive No Cost EMI card that allows you to use the No Cost facility. 


Additionally, you can use the EMI card to get a free EMI deal at any of the 1.5 Lakh+ partner stores that Bajaj Finserv has partnered with across 4000 locations. The card enables you to shop for more than a million products on equated monthly instalments (EMI) without paying a down payment, processing fee, or additional interest.

Do I need to pay a down payment with No Cost EMI?

No, if you opt for a No Cost EMI from Bajaj Finserv, you need not make any down payment. You will only be required to pay your monthly instalments with no additional interest amount.

What is the difference between zero cost EMI and a regular EMI scheme?

Under a regular EMI scheme, you need to pay an interest amount along with your monthly dues. Under zero cost EMI, however, you need to only pay the principal amount over your chosen tenure of repayment.

Is interest applied on a No Cost EMI?

No, interest is not applicable on No Cost EMI payments. You must pay only the amount of the bill spread over your chosen repayment tenure.

What is the difference between EMI and no-cost EMI?

Under regular EMI, you are charged interest on top of your monthly payments, whereas, with a No Cost EMI from Bajaj Finserv, you need not pay any interest. You only need to pay the principal amount due.

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