How No Cost EMI Works

How Does No Cost EMI Work?

Find out more about how no-cost EMIs work

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Get No-Cost EMIs at leading online stores. Shop using your Bajaj Finserv EMI Network Card

No Cost EMI- How it Works?

EMI, which stands for equated monthly instalments, is a method of paying off an outstanding loan against a purchase. It involves a down payment against which the financier pays the remaining amount as loan, for a 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 EMI lets you pay only the principal amount borrowed. In other words, no cost EMI financing calculates your EMIs by dividing only the purchase price of the item by the length of the repayment tenure, without charging anything extra.


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 3, 6, 9, 12, 18, or 24 months, depending on your preference.

How to avail Zero Cost EMI using the EMI Card?

The no cost EMI facility can be availed by means of a debit or credit card that offers the feature or with an exclusive zero cost EMI card such as the Bajaj Finserv EMI Network card. The Bajaj Finserv EMI Network card can be used in any of the partner stores online.It can also be used to avail no cost EMI deal in any of the 84,200+ Bajaj Finserv’s partner stores that it partners with over 1300 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. So, check out the Bajaj Finserv EMI Network card apply online process to start shopping in No Cost EMIs!

FAQs on How No Cost EMIs Work

  • ✔️How is No Cost EMI deducted?

    No Cost EMI doesn’t involve any deductions. No Cost EMI means that when you buy a product on EMI, the principal amount (price of the product) has to be paid back in staggered instalments without any interest added. 

  • ✔️How does No Cost EMI actually work?

    To understand No Cost EMI meaning and how it actually works, you should know that when you opt for EMIs to purchase products, you don’t have to pay any cash upfront. Instead, the principal amount of your product is split into monthly instalments (EMIs) that you pay over a flexible tenure (ranging from 3-24 months). ‘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 No Cost EMI?

    When you choose a Bajaj No Cost EMI facility, you don’t have to pay interest on EMIs. An example of No Cost EMI is when you buy a smartphone for Rs. 12,000. You only pay the actual cost of the smartphone, split into monthly instalments over a tenure of, say, 12 months. So you pay an EMI of Rs. 1000 per month. 

  • ✔️How to get no-cost EMI using EMI Card?

    Bajaj Finserv EMI Network Card is an exclusive no-cost EMI card that allows you to use the no-cost facility. Any online partner store of Bajaj Finserv accepts the Bajaj Finserv EMI Network card. Additionally, it may be utilised to get a free EMI deal at any of the 84,200+ partner stores that Bajaj Finserv has partnered with across more than 1300 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 we 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 at no additional interest amount.

  • ✔️Difference between zero cost EMI and a regular EMI scheme?

    Under a regular EMI scheme, you will be charged 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 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.

  • ✔️Difference between EMI and no cost EMI?

    Under regular EMI you are charged an 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.