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No-Cost EMI on Mobiles in India: How It Works, Hidden Charges, Best Cards
Aug
1. Introduction
Buying a new mobile phone in India can be exciting, but not everyone wants to pay the full amount in one go. That’s where No-Cost EMI offers come in. Brands like Samsung, Apple, Xiaomi, and OnePlus, along with online stores like Amazon and Flipkart, advertise “No-Cost EMI” to make purchases easier on your pocket.
But is it really zero cost? In this guide, we’ll explain:
- How No-Cost EMI works
- The truth about hidden charges
- Best cards and payment options for No-Cost EMI on mobiles in India
2. What is No-Cost EMI?
No-Cost EMI means you can pay for your mobile in monthly installments without paying any extra interest.
For example:
- Mobile Price: ₹24,000
- EMI Duration: 6 months
- Monthly Payment: ₹4,000
- Total you pay: ₹24,000 (same as original price)
Sounds perfect, right? But the real story is a bit different.
3. How No-Cost EMI Actually Works in India
Banks usually charge interest on EMI payments. So how do they call it “No-Cost”?
There are two main methods:
A) Discount Model
- The retailer gives you an upfront discount equal to the interest amount.
- Example: If your phone is ₹24,000 and 6-month EMI interest is ₹1,200, the retailer sells it to you at ₹22,800 so that with interest, you still pay ₹24,000 in total.
B) Interest Subvention by Brand
- The mobile brand itself pays the bank the interest amount as a promotional offer.
- Example: Apple or Samsung pays the interest to the bank so you only pay the original price in EMIs.
4. Hidden Charges in No-Cost EMI
Even though there’s no interest, there can still be extra costs:
- Processing Fee – Many banks charge ₹99–₹299 per EMI transaction.
- GST on Interest – Even if the brand pays your interest, you might still pay GST on that interest amount.
- Foreclosure Charges – If you pay off the EMI early, banks may charge a penalty.
- Down Payment – Some offers require an upfront payment before EMI starts.
💡 Tip: Always check the final amount on the payment page before confirming.
5. Best Cards for No-Cost EMI on Mobiles in India (2025)
Here are some of the most popular cards for No-Cost EMI:
| Bank / Card Name | EMI Tenure Options | Special Benefits |
|---|---|---|
| HDFC Bank Credit Card | 3–24 months | Often gives instant cashback on mobiles |
| ICICI Bank Credit Card | 3–12 months | Wide acceptance on Amazon, Flipkart |
| SBI Card | 3–24 months | Special festive EMI offers |
| Axis Bank Credit Card | 3–12 months | Extra discount + EMI combo offers |
| Bajaj Finserv EMI Card | 3–24 months | No credit card needed, instant approval |
6. How to Avail No-Cost EMI on Mobiles (Step-by-Step)
Online Purchase (Amazon/Flipkart)
- Choose your mobile and go to checkout.
- Select “No-Cost EMI” under payment options.
- Choose your bank/card and EMI tenure.
- Review total payable and confirm purchase.
Offline Purchase (Retail Stores)
- Visit the store and choose your mobile.
- Ask for No-Cost EMI and eligible cards.
- Provide card details or Bajaj EMI card.
- Pay any down payment if required, and complete the transaction.
7. Pros and Cons of No-Cost EMI on Mobiles
✅ Pros:
- Easy monthly payments
- No extra interest burden
- Great for expensive smartphones
❌ Cons:
- Hidden charges possible
- Limited to certain cards and banks
- Early closure fees in some cases
8. Final Tips Before You Choose No-Cost EMI
- Compare final payable amount vs full payment offers.
- Check if cashback offers make regular EMI cheaper.
- Avoid long EMI tenures unless necessary.
- Read terms & conditions for foreclosure charges.
Conclusion
No-Cost EMI on mobiles in India is a great option if you choose the right card and understand the terms. It makes expensive smartphones more affordable without breaking your budget, but always look out for hidden charges before you hit that “Buy Now” button.
