1. What is No Cost EMI?

No Cost EMI is a payment option where you can purchase products by paying in monthly installments without any additional interest charges. The total amount paid equals the product price divided equally over the chosen tenure.

2. How Does the Calculator Work?

The calculator uses the simple EMI formula:

Where:

• \( P \) — Principal amount (AUD)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (AUD)

Explanation: For no-cost EMI, the total amount is simply divided by the number of months in the tenure.

3. Importance of EMI Calculation

Details: Calculating your EMI helps in financial planning and ensures the monthly payment fits within your budget before committing to a purchase.

4. Using the Calculator

Tips: Enter the total purchase amount in AUD and select your preferred repayment period (1-60 months). The calculator will show your fixed monthly payment.

5. Frequently Asked Questions (FAQ)

Q1: Are there really no extra costs in no-cost EMI?
A: With true no-cost EMI, you pay exactly the product price divided over months. However, always check for hidden processing fees.

Q2: What's the maximum tenure available for no-cost EMI?
A: Typically 3-24 months, though some retailers may offer up to 60 months for high-value items.

Q3: Does no-cost EMI affect credit score?
A: Yes, it appears as a loan on your credit report. Timely payments help your score, while missed payments hurt it.

Q4: Can I prepay my no-cost EMI?
A: Most banks allow prepayment, but some may charge a small foreclosure fee (usually 1-3% of outstanding amount).

Q5: Is GST applicable on no-cost EMI?
A: Yes, GST is charged on the product price but not on interest (since there is none in true no-cost EMI).