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 additional interest charges. The interest is either waived off or borne by the merchant/bank as part of promotional offers.

2. How Does the Calculator Work?

The calculator uses the simple EMI formula:

Where:

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

Explanation: Since there's no interest in no-cost EMI, the EMI is simply the principal amount divided by the number of months.

3. Benefits of No Cost EMI

Details: No Cost EMI allows you to spread your payments over time without paying extra, making expensive purchases more affordable while keeping your money in your account longer.

4. Using the Calculator

Tips: Enter the total purchase amount in INR and select the desired tenure in months (typically 3-24 months for Kotak credit cards). The calculator will show your monthly payment amount.

5. Frequently Asked Questions (FAQ)

Q1: Is there really no interest in no-cost EMI?
A: The interest is either waived or borne by the merchant/bank. You only pay the principal amount divided over the tenure.

Q2: Are there any hidden charges?
A: Some banks may charge GST on the interest component (even if waived), processing fees, or foreclosure charges. Check with Kotak for exact terms.

Q3: What is the minimum purchase amount for no-cost EMI?
A: Typically ₹3,000-₹5,000 depending on the merchant and offer terms.

Q4: Can I prepay or foreclose my no-cost EMI?
A: Yes, but foreclosure charges may apply. Check with Kotak Bank for specific terms.

Q5: Does no-cost EMI affect my credit score?
A: Like any credit card transaction, timely payments help your score, while missed payments can negatively impact it.