The Truth About 'No Cost EMI' in India: It's Almost Never Free
'No Cost EMI' looks free, but the cost is usually hiding in plain sight. Here's how it really works in India, and a 30-second test to check any offer.
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Then There's GST on the Interest
Here's a smaller sting that surprises people. Even when interest is "waived", the bank still calculates it internally — and GST at 18% applies on that interest amount. That GST is not waived. It lands on your card or your first instalment. On a ₹54,000 purchase, that can quietly add a few hundred rupees you weren't expecting. Small, yes. Free, no.
Processing Fees Like to Hide Here Too
Many offers also carry a processing fee, often ₹99 to ₹500, buried in the terms. Add that to the GST and the "no cost" deal has cost you real money before you've even opened the box.