What is No Cost Emi .

What is No Cost EMI and how it works.

Most of the people know, what is No Cost EMI, If you Don’t Know, what it is, and how it will work. We are explained below.

We can this this No Cost EMI on Online shopping website, Like, Amazon, Flipkart, etc.

No Cost EMI is the option, allows to buyer to buy product online, with paying small amount for multiple time period, So the buyer don’t need to spend whole amount at one product on purchasing at a time.
No Cost EMI is different as regular EMI’s Like Personal Loan EMI, Home Loan EMI, or any other EMIs,

With This NO Cost EMI. No Interest will charge from Buyer, and the Total EMI to pay that is equal to Cost of the product. Which is generally popular with zero cost EMI, ZERO Interest EMI, with the words.
Let us understand with Example, How Consumer can get benefit with this No Cost EMI.

A person of Consumer looking to buy Electronic gadgets like Mobile Phone.
He searched for the Product Mobile Phone in Online shopping, as well as Searched in Offline shopping. With same price but different option to buy this product. When looking into online shopping there is three 3 option available to buy a product.
Assuming product price 20000Rs

Online Shopping

  1. Buy product direct visiting product page online shopping website with paying as listed price.
  2. Buy a product with a small amount that should multiplied on a monthly basis as applicable on the No Cost EMI option.
  3. Credit card EMI as per applicable interest applicable for tenure.
No Cost EMI

In option one Need to pay whole amount 20000 (Twenty Thousand) and buy product and exit the shopping,
In Second option Buy Same product with same price but Need not to pay whole amount 20000rs (twenty Thousand). Instead this we can pay small amount as applicable tenure of No cost EMI option. Let say, tenure of No Cost EMI applicable as 6 months, now the product price 20000/6, (Twenty thousand / Divided by 6) per month need to pay, as 3,334 (Three thousand three hundred thirty four). This is small amount as compared to 1st option 2000rs paying at once.

Now the Third option, this option available the same as Second option listed above which is NO Cost EMI, but here we need to pay Interest of that amount, it differ as bank-to-bank.

Now in this case, Consumer will get profit on option second if the consumer what to pay less amount and consumer can use remaining amount to buy something else.
The first option is also to make discipline, so that need not to worry, about paying EMI on Month.
Defiantly we will not recommend going with third option available in online shopping website which will cost Interest on buying product On Credit Card EMI.

Offline Shopping.


In offline shopping also will have same option available as available in online store but Its limited store.
Here will get discount instant on paying whole amount, it’s depend on seller providing offers.

How seller will get benefit to avail this offer to consumer.
Well in this place bank are involving smartly.There is a structure or strategy to product to reach a consumer.

The product manufacturer will decide product MRP. This MRP will come after all margin & expenses added, Margin like (Manufacturer + Distributor+ retailer) then the product MRP cost will decide.

Structure of product from Manufacturer to Consumer is Manufacturer==>Distributor/or wholesaler/retailer==> Consumer

assume Manufacturer decide MRP of a product is 20000Rs, Manufacturer will this product to Distributor or Retailer or Wholesaler with cost of 16000, than retailer will sale this product to consumer as per MRP rate which is 20000Rs, Now Bank will come reach to retailer saying that you can double your money within a Month.

Let say how, if retailer sales product averagely in a month is 100 qty now the margin retailer received is 100*4000 = 400000Rs if he sales on MRP rate.

Now in this place bank will involve to increase sales, this bank will provide EMI option to buy this product to consumer, if consumer paying less amount to buy product then sales will increase automatically, for this service providing bank will change sum percentage from retailer.

Hope you all understand what NO Cost EMI is and how it’s Work.

Thank you for Reading

1 Comment
  1. Very useful information thanks a lot 👍🙏

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