How No Cost EMI Works

How Does No Cost EMI Work?

How does zero cost EMI work?

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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. 

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