No processing charge, no down payment, no interest and you have to pay in instalments without extra charges, so how is it possible.

if we choose no cost EMI, we don’t have to pay interest,

So banks aren’t charging interest…!! Well this is not possible since RBI guidelines clearly states a bank cannot provide loan without interest. So the question is who pays the money, is it flipkart or the specific website??

THE answer is

What happens here is, whatever the interest charges are for a specific product, they are deducted on the actual products price. So who bears the loss,

its the BRAND who bears the loss, for example if a products cost is rupees 6000, as a no cost EMI, and the interest is 300 rupees, the company deducts the amount and presents the product to you in rupees, 5,700 and the bank charges the interest on 5,700 rupees and you don’t have to pay extra.

Another very common query is “do we have to pay the exact amount on no cost EMI or we have to pay extra.” So here if we are using NO cost EMI for three months, GST and other taxes are also added so we do pay some extra charge, it’s not true that no cost EMI is actually a zero interest EMI, but still it is a beneficial deal for the customers.

One more doubt is why no cost emi is for 3 months, or 4 months, or 6 months. It’s very simple, longer the duration, extra the interest for the company to pay, hence they do not extend the duration more. So overall it’s a win-win situation for the customers.

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