No Cost EMI is a type of easy EMI facility that allows customers to convert the cost of their purchase into EMIs and pay nothing over the agreed purchase price. No Cost EMI is sometimes also referred to as zero cost EMI or interest-free EMI. The tenure of a No Cost EMI can vary, typically ranging from three months to two years. To calculate monthly EMIs under the No Cost EMI scheme, customers can divide the purchase price by the length of the repayment tenure.

No Cost EMI schemes allow customers to divide the cost of their purchase into easy monthly installments without having to worry about hefty payments upfront. However, it is important to note that the term "No Cost EMI" is a misnomer since customers may end up paying either the full price for a discounted product or an additional interest amount. The interest amount is often camouflaged and passed on to the customer in the form of processing fees, late payment penalties, or other hidden charges.

No Cost EMI schemes can be useful in case customers are buying an expensive product and cannot pay the entire amount at once. However, customers should be careful when taking a No Cost EMI, as hidden charges and high processing fees or late payment penalties may needlessly deplete their savings or resort to borrowing funds. It is important to check all such charges before availing the EMI facility.