Is no cost EMI really free or are there hidden charges?

Short answer
No-cost EMI is usually not completely free. Interest may be waived, but some charges still apply.

What No-Cost EMI Really Means

In a no-cost EMI, the interest charged by the bank is adjusted by giving you an upfront discount on the product. You repay only the product price in instalments. On paper, interest zero lagta hai, but adjustment already ho chuka hota hai in pricing.

Common Hidden or Ignored Charges

Even if interest is zero, other charges may still apply. These include processing fees charged by the bank or card issuer, GST on processing fees, and sometimes documentation charges. These amounts are small individually, but they increase the final cost slightly. Yahin pe log confuse ho jaate hain.

Product Price Difference

In some cases, the no-cost EMI price is higher than the normal upfront price. Sellers quietly adjust the discount. If you had paid full amount at once, you might have got a better deal. Isliye comparison zaroori hota hai.

Foreclosure and Cancellation Charges

If you close the EMI early or cancel the order, banks may charge foreclosure or cancellation fees. Refund process bhi slow ho sakta hai. Yeh cheez checkout pe clearly nahi dikhayi jaati.

Credit Card Limit Impact

No-cost EMI still blocks your credit card limit. Even though interest is zero, your available limit reduces till EMIs are fully paid. Multiple no-cost EMIs ek saath lene se credit utilisation badh sakta hai.

When No-Cost EMI Makes Sense

It works well if you were planning the purchase anyway, fees are low, and you are sure about timely repayment. Discipline zaroori hai, warna late payment charges lag sakte hain.

Final Takeaway

No-cost EMI is not a scam, but it is not completely free either. Interest zero ho sakta hai, total cost zero nahi. Checkout pe final amount, fees, and terms clearly check karo. Samajh ke liya gaya EMI hi actually no tension hota hai.