1. What is No Cost EMI?

No Cost EMI allows you to convert your purchases into monthly installments without any additional interest charges. The merchant or bank absorbs the interest cost, making it a zero-cost option for customers.

2. How Does the Calculator Work?

The calculator uses the simple EMI formula:

Where:

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

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 budgeting and financial planning. It ensures you know exactly how much will be deducted from your credit card each month.

4. Using the Calculator

Tips: Enter the total purchase amount in INR and select your preferred repayment tenure (3-24 months typically). The calculator will show your monthly payment amount.

5. Frequently Asked Questions (FAQ)

Q1: Is there really no cost in no-cost EMI?
A: While there's no interest charged to you, the merchant or bank pays the interest. Some products might have slightly higher prices to compensate.

Q2: What is the minimum purchase amount for no-cost EMI?
A: ICICI typically requires a minimum purchase of ₹3,000-5,000 for no-cost EMI options.

Q3: Can I prepay my no-cost EMI?
A: Yes, but prepayment charges may apply. Check with ICICI Bank for current policies.

Q4: Does no-cost EMI affect credit score?
A: Like any credit card usage, timely payments help your score while missed payments can hurt it.

Q5: Are all products eligible for no-cost EMI?
A: No, only selected products and merchants participate in no-cost EMI schemes.