How does No Cost EMI work?

What is No Cost EMI?

No Cost EMI or Zero Cost EMI is a payment option that allows you to pay for goods in installments without interest. These plans are designed to make your purchases easier without requiring you to pay in full upfront.


How does No Cost EMI Work?

No cost EMI operates on two principles. The first one is to use the discount to offset the interest rate, and the second one is to increase the item’s original price by the amount of interest. Let’s dive deeper into what these mean.


  • Equating discounts with interest rate: In the case of an EMI scheme offered by most retailers, you are expected to receive a discount of a certain amount on your purchase. However, on opting for a No Cost EMI scheme, the consumer forgoes the discount in order to avail flexible repayment tenures.For instance, assuming you spend Rs. 35,000 on a television set, on which you receive a 10% discount .In case you opt for a no cost EMI, you will have to forego the discount and instead pay the full cost of the product but in installments.
  • Product price includes interest: With this strategy, the store includes the interest component in the price of the real product and charges you according to the No Cost EMI rules and flexible repayment tenure optionsConsider the smartphone worth Rs. 20,000 you plan to purchase as an example. Assuming an interest of Rs. 2,000 is levied on this product, the selling price of the phone will now be set at Rs.22,000. Under the No Cost EMI label, you now make a purchase at this cumulative cost.
  • True No Cost EMI: Innoviti terminals offer you the best of both, as you can avail No Cost EMI schemes without foregoing the discount. As a collaborative commerce platform we make it possible to offer the customer and merchant the best payment solutions as we subvent the costs thereby giving you as promised a No Cost EMI at the best market price.

BNPL – Buy Now Pay Later with EMI

When there is a fall in the consumer’s ability to spend, they become hesitant to buy products that could possibly dent their monthly budgets. This was especially the case during the pandemic.

Such observations is what made us boost purchases by launching the #KuchBhiOnEmi campaign within the Genie product, enabling consumers to Buy Now and Pay Later. Instead of paying everything up front, customers can stretch out their payments over 3 months, 6 months, 9 months or even 12 months in some cases. With this customers have the option to borrow credit, frequently and interest-free through and avail buy now pay later schemes.

A wide range of merchants who have enabled the Innoviti emi wallet are able to sell anything on zero cost emi with no added cost to the customer. The wallet has a limit worth Rs. 2,00,000 and is easily rechargeable. Merchants are able to expand more quickly thanks to Innoviti’s unique payment solution.


Advantages & Disadvantages

Let us now discuss the advantages and disadvantages of no cost EMI.


The Advantages of No Cost EMI

  • You can purchase expensive items with the help of a no cost EMI plan while maintaining a budget.
  • Interest and processing fees are not included in a no cost EMI. This function makes your purchases easier and less expensive.
  • A wide range of offline and online retailers provide this EMI option. Today, this feature is offered by almost all e-commerce websites.
  • Flexibility to choose the term based on your monthly budget.
  • Better budgeting is made possible by having the option to pay the same amount in installments.

It is impossible to discount the EMI benefits since timely EMI payments help to build your credit history and provide access to future borrowing opportunities.


No Cost EMI vs Low Cost EMI

ParticularsNo Cost EMILow Cost EMI
Incidental ChargesThere are no ancillary charges associated with the No Cost EMI.These transactions include processing costs or down payments. GST or other taxes might be applied by your bank on the interest portion of your EMI.
Will interest be charged by BankNo charge EMI does not include any interest component.Yes, the bank will apply interest to low cost EMI programs at the current rates. However, you will receive a discount up front for the interest the bank will be charging.


A scheme that allows you to pay for a good on manageable monthly installments with no interest and no processing costs is known as a No Cost EMI. This indicates that there are no additional fees involved; you are only paying the product’s full price.

For instance, if you choose a 6-month No Cost EMI and decide to purchase a product worth Rs. 30,000, you would be required to pay your EMI provider Rs. 5,000 each month for the duration of the 6-month period, which will result in a final payment of Rs. 30,000 with no interest charges.

No Cost EMIs are an affordable alternative that will allow you to immediately enjoy your purchase. As a customer, you can utilize this option to buy expensive things for your needs without having to pay for them upfront. Unlike conventional business loans, they are simple to avail and do not include extensive documentation procedures. Innoviti’s POS machines provide excellent offers and discounts to consumers in offline stores, keeping up with the growing e-commerce trends.

With no cost EMI on credit cards, your credit limit is used to offset the amount owed. Additionally, the credit limit is gradually recovered with each EMI you pay.

When a debit card is used for a no cost EMI, the complete sum is first taken out of the bank account. Within a few days, the money is credited back to the bank account, turning the original transaction into a loan. Therefore, you must ensure that the money is already in your bank account if you intend to take advantage of no cost EMI on a debit card.

Once an EMI transaction request has been made, it cannot be changed, reversed, or canceled until the issuing bank of the credit card holder has authorized or refused it.

The main distinction between EMI and no cost EMI is that when you choose to pay for a product using regular EMIs, the amount of your EMI includes both the interest component and the processing costs. You can turn the cost of your goods into zero interest EMIs when you select no cost EMI. Simply explained, a regular EMI is the amount plus interest, while a no cost EMI is the amount alone.

If the store from which you are buying a product offers such a program, you are eligible to use the no cost EMI advantage. You should check to see if the program is still in effect before purchasing because no cost EMI is not usually offered.

They are often organized on specific occasions and for a limited number of items. With Innoviti’s EMI wallet, however, merchants are empowered to offer EMI options on a wide range of electronic goods, even refurbished ones. Register your interest or visit the nearest Genie partnered store to avail the benefits.

Many services on the market let you make expensive purchases on EMI without using a credit card. With these alternatives, you can use both online and offline payment methods, and you can pay for your items in manageable monthly installments. Online retailers have developed a no cost EMI option that may be used without a credit card.


The emergence of e-commerce has fundamentally altered how we make purchases. Due to regular messages enticing them to purchase items at lower costs, consumers are now more impulsive than ever.

Always consider the down payment and the processing fees, if any, when selecting a financing option with a zero interest EMI. Not all of the items that retailers sell are eligible for this EMI program. For example, zero interest EMI will not apply to you if you pay an EMI for a bike loan. Therefore, carefully read the terms and conditions before using this plan. However if you purchase goods from an Innovoti genie enabled store, you can avail the benefits of no cost EMI on any product of your choice.

Use Innoviti genie to purchase any mobile phone on no-cost EMI, even if there is no brand offer on it. Utilize Innoviti’s Buy Now Pay Later option and collaborate with various brands that cater to a Generation Y audience.