Why ‘No-Cost’ EMIs On Flipkart And Amazon Might Be Costing You More

Flipkart’s Big Billion Days and Amazon’s Great Indian Festival take place on September 23, 2025. New GST rates come into effect on September 22, which will reduce product prices.

Electronics and daily necessities may seem cheaper than earlier weeks, but be careful of no-cost EMI deals – this is a way to cover the costs of raising the price. Rather than stated costs on a “no-cost” EMI basis, it may actually just be hidden costs and now you are paying more than before.

Spending More Than You Need

Then, there is the risk of overspending. While no-cost EMIs are convenient for shoppers, they drive purchasing on things you may not need. If you think it is easy to spend on gadgets that would be very affordable on a no-cost EMI scheme – for the most part, that is a wrong decision – the price will drop, rather than the spending amount. Not the best for a budget conscious consumer.

Processing Fees

Be aware that no-cost EMIs have very sneaky fees. Banks charge the processing fee as high as 3%. Some companies may try to limit the time period where there is no cost. After the first purchase period, you now have incurred the maximum interest from not reading the fine print. When in doubt, ask for the paperwork and don’t sign anything. Always take the time to read before you ink the deal.

Effects on Your Financial Health

When you make EMI payments, the amount of your card limit is blocked. For example, a TV costing Rs 40,000 means that amount is blocked from your card limit. This will lead to a decreased limit on your card. Missing a payment incurs late fees and may increase interest charges. Your credit score could decrease significantly. Moreover, EMI payments typically do not earn cashback or rewards.

Advantages of No-Cost EMI

No-cost EMI is beneficial if you cannot afford to pay the full price upfront. You can pay a more manageable, smaller amount each month. They reduce friction since you can easily process the request and it can be super quick. Some credit cards provide actual discounts. However, carefully consider the risks of no-cost EMI before committing to them—have you budgeted for the payments?

Smart Shopping During Sale Events

With festivals, sales provide opportunities to purchase at great prices. You may think that no-cost EMI will handle your expenses. However, hidden costs can accumulate quickly. Before you make purchases, it is important to be mindful of your spending habits to make sure you do not overcommit.

First, check that you can make all of the payments planned for your spending habits. Pay attention to the price comparisons before committing, and understand all of the terms so that you avoid pitfalls that will cost you even more. Saving “money” long term with smart shopping will better benefit your credit habits.

Also Read: Best Credit Cards To Save On Amazon, Flipkart, Swiggy, and More