No-Cost EMI Calculator

Banks don’t lend at 0%. A No-Cost EMI is a normal interest-bearing card EMI where the brand or store pays the interest for you, either by cutting the price at checkout or by paying it back later. The RBI requires card issuers to show the principal, interest and the discount that makes it “no cost” before you convert, to show them separately on the statement, and not to dress up an interest-bearing EMI as zero-interest.

Worked example. A ₹60,000 phone on a 6-month No-Cost EMI at 16% a year: the store gives an upfront discount of ₹2,703, so the bank lends ₹57,297. Six EMIs of ₹10,000 add up to ₹60,000, and ₹2,703 of that is interest. GST at 18% on the interest adds ₹487, and a ₹199 processing fee with GST adds ₹235. The phone costs you ₹60,721, ₹721 more than paying in full.

Why interest still appears on your statement

Because the bank really does charge it. Each month’s statement shows the interest part of the EMI and 18% GST on it. Under the upfront model you never see that interest as extra, because the store took it off the price first; the GST on it is still yours to pay.

Interest subvention vs cashback

With upfront subvention, the discount is applied at checkout and the bank lends the lower amount. With cashback later, the bank lends the full price, charges interest on all of it, and the interest comes back as cashback, often weeks or months later. On the example above the cashback model charges ₹2,831 interest and ₹510 GST, and you carry the interest until the cashback lands. If you cancel or close early, either kind can be reversed.

SBI Card’s own explanation follows the upfront model: ₹35,000 over 6 months at 14% gets ₹1,386 manufacturer cashback upfront, the loan is booked at ₹33,614 and the EMI is ₹5,833. This calculator gives the same ₹1,386, ₹33,614 and ₹5,833.

Why GST and fees make “No-Cost” cost something

• GST on interest: 18% on every month’s interest, even when a discount covers the interest itself.
• Processing fee: ₹99 to ₹299 at most of the banks checked here, plus 18% GST, and not covered by the store.
• Lost rewards: many cards give no reward points on EMI purchases.
• Lost discounts: a full-payment bank offer you can’t combine with the EMI.

How bank EMI programmes differ

Rates, fees and rules vary a lot between issuers, and they change. From their published terms on 18 Oct 2026: SBI Card charges 17.25% for 3 months and 17% for longer tenures with fees from nil to ₹169; ICICI Bank charges 15.99% with a fee of 2.99% capped at ₹299; HSBC charges 15% with a ₹99 fee; American Express charges 14% to 15% with a ₹199 fee. The bank panel above lists what each issuer publishes and links to the source.

Is No-Cost EMI cheaper than paying in full?

Usually not by itself: the GST and fee make it slightly dearer. It comes out cheaper when an EMI-only discount is bigger than those costs, or when you would otherwise borrow at a higher rate. Paying in full wins when it has its own bank discount or earns rewards you’d lose on EMI. Enter both sides above to see which way your purchase goes.

Cancelling or foreclosing a No-Cost EMI

If you return the product, the EMI is cancelled only when the store refunds the full amount within the bank’s window (45 days at SBI Card and 15 days at ICICI Bank; Axis Bank waives charges within 7 days). Closing it early instead usually costs a 3% foreclosure fee plus GST on the outstanding principal, and the subsidy or cashback may be taken back.