What Is The Difference Between EMI And No Cost EMI?

Did your old refrigerator shut down today? Are you planning to renovate your home or thinking of buying new home decor? Such big-ticket purchases may disrupt your budget. But, if you avail the EMI option for your purchase, your burden will be lessened.  Let’s see how it works.


EMI stands for Equated Monthly Instalment. To repay an outstanding loan, you can make fixed monthly payments to the lender on a particular date of the calendar month. The EMI finance scheme helps buyers purchase high-value items through EMIs, thereby lessening the burden of paying a huge amount upfront.

If you are a borrower, you can make only one fixed payment amount each month. However, EMI plans come with an interest rate. EMIs are applied to both interest and principal each month so that over a specified number of years/months, the outstanding amount of the loan is paid off in full.

These EMI interest charges will be high, and you may pay a fairly high additional amount as interest while using the EMI option. Along with this, you may be charged processing fees too. This is where no cost EMI can help you out.

No Cost EMI

No cost EMI is a finance scheme where the borrower has to pay only the product price in EMIs spread over the repayment timeline. It is similar to regular EMI, and the difference is that it doesn’t come with the interest component.

In other words,

Regular EMI = Actual cost + Interest

No cost EMI = Actual cost

If you purchase an item at no cost EMI, you are required to pay no additional interest on the principal. So, you need to pay only the product’s actual price in easy EMIs at no added cost. You can use the no cost EMI option by availing an EMI card.

Bajaj Finserv offers Bajaj Finserv EMI Network Card, which could be an alternative to the traditional credit card. Using this card, you can enjoy the benefits of no-cost EMI and save more when you purchase products on EMI.

How Does Bajaj Finserv No Cost EMI Works?

When you use the no-cost EMI feature of the Bajaj Finserv EMI Card, you use the pre-approved loan to convert the cost of purchasing items into EMIs with zero cost. As a result, you end up not having to pay anything over the actual product cost.

Let’s take an example. Imagine purchasing the latest iPhone on EMI, costing Rs. 1,20,000, using your Bajaj Finserv EMI Network Card. If the repayment tenure chosen is 12 months, you will only have to pay Rs. 10,000 every month for the next year. As the card comes pre-equipped with the no-cost EMI feature, no interest charges will be levied on the Rs. 1,20,000 borrowed.

Benefits Of No Cost EMI Option

Take a look at the amazing benefits this no cost EMI option offers.

  • Buy big-ticket items conveniently at affordable rates.
  • No interest charges, additional costs, or down payments are required.
  • You can use it while shopping both online and offline.
  • Exclusive offers and zero foreclosure charges.
  • Best during big festive seasons or shopping fests as you can buy in bulk while keeping your budget intact.
  • No cost EMI facility works in case of exchange offers too.

How To Apply For A Bajaj Finserv EMI Network Card?

You can apply for a Bajaj EMI Card via online and offline methods. Below-mentioned is the steps you should follow to avail an EMI card.

  1. Online
  • Visit the official Bajaj MARKETS website.
  • Provide your basic details like name, date of birth, mobile number, etc.
  • Check your pre-approved offer limit to proceed further.
  • Verify your KYC details online.
  • Activate your Bajaj Finserv EMI Network Card by paying a joining fee.
  • Your EMI card will be activated instantly.
  1. Offline
  • Visit a nearby Bajaj Finserv EMI network partner store.
  • Select the product you want to buy.
  • Get assistance from the store representative and choose in-store financing.
  • Submit a few basic documents to set up your Bajaj Finserv EMI Network card.

You can customise your repayment tenure as per your need. You can use the no cost EMI option of the Bajaj Finserv EMI Network card on online portals such as the Bajaj Finserv EMI Store, as well as e-commerce websites such as Amazon, Flipkart, MakeMyTrip, Goibibo, OnePlus etc. You can also use this card at Bajaj Finserv partner stores spread across 1,900+ cities for offline purchases.

If you wish to enjoy the benefits of the Bajaj Finserv EMI Network Card, you can apply for one through the Bajaj MARKETS website or app. So, while shopping, stop worrying and start saving!

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