What that offer really costs
No Cost EMI Calculator
No Cost EMI is rarely free. See your monthly EMI plus the GST, processing fee, and instant discount you actually give up.
Card EMI in India is typically 13–18%.
Usually ₹99–₹299, plus GST.
Paid upfront, not financed.
Some offers pay more when you skip EMI.
Monthly EMI
₹2,722
× 12 months
Extra vs paying today
₹714
2.38% of the price · 2.38% effective p.a.
This “No Cost EMI” is not free. The interest is rebated, but you still pay ₹714 — mostly GST on interest that no one refunds.
Where the money goes
- Amount financed
- ₹30,000
- Bank interest
- ₹2,663
- Interest rebated by merchant
- −₹2,663
- GST on interest (18%)
- ₹479
- Processing fee incl. GST
- ₹235
- Total you pay
- ₹30,714
Estimates only. Your bank's actual rate, fee, and GST treatment decide the final amount — check the offer terms at checkout.
How No Cost EMI actually works
Is No Cost EMI really free in India?
Usually not. The merchant rebates the bank's interest as an upfront discount, but GST at 18% is charged on that interest and is never refunded. Add the processing fee and any instant discount you forfeit by choosing EMI, and a 'no cost' offer typically costs 2–4% of the product price.
Why do I pay GST on No Cost EMI?
The bank still books interest on the loan, and GST is levied on that interest as a financial service. The merchant's discount only offsets the interest itself, not the tax on it, so the GST appears on your card statement.
What is a typical credit card EMI interest rate?
Most Indian card issuers charge between 13% and 18% per annum on EMI conversions, plus a processing fee of ₹99 to ₹299 and GST on both.
Should I take EMI or pay upfront?
If the total extra cost is close to zero and you keep the cash invested, EMI is reasonable. If the offer forfeits an instant discount, or the EMI takes more than 10% of your monthly income, paying upfront or waiting is usually the better call.