1. What is No Cost EMI?

No Cost EMI is a payment option where you can convert your purchase into monthly installments without paying any extra interest charges. The total cost remains the same as the upfront payment price.

2. How Does the Calculator Work?

The calculator uses the simple EMI formula:

Where:

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

Explanation: For no-cost EMI, the total amount is simply divided equally across the tenure months since there are no interest charges.

3. Importance of EMI Calculation

Details: Calculating your EMI helps in financial planning by knowing exactly how much will be deducted from your credit card each month for the purchase.

4. Using the Calculator

Tips: Enter the total purchase amount in INR and select the tenure period in months (typically 3-24 months for ICICI no-cost EMI).

5. Frequently Asked Questions (FAQ)

Q1: Are there really no extra charges in no-cost EMI?
A: While there's no interest, some merchants may charge a small processing fee (usually 1-2% of the purchase amount).

Q2: What is the minimum purchase amount for no-cost EMI?
A: ICICI typically requires a minimum purchase of ₹5,000 for no-cost EMI options.

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 defaults can hurt it.

Q4: Can I prepay my no-cost EMI?
A: Yes, but check with ICICI as some banks may charge a foreclosure fee for early repayment.

Q5: What happens if I miss an EMI payment?
A: Late payment fees and interest charges may apply, and it could negatively impact your credit score.