No-cost EMIs in Flipkart, Amazon sales may cost you more because…

Shoppers are rushing to Flipkart and Amazon's festive sales, but no-cost EMIs might seem helpful while quietly increasing your overall spending.

Shoppers are gearing up for Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, set to begin on September 23, a day after new GST rates come into effect. The revised rates are expected to make many products, including electronics and daily-use items, more affordable. But do they really save money, or do they quietly increase your expenses?

Here’s why no-cost EMIs during Flipkart and Amazon sales might end up costing you more money. (Pexels)

By MD Ijaj Khan

Ijaj Khan is a technology journalist and Senior Content Producer at Hindustan Times, with over three years of experience covering the consumer technology industry. His work spans smartphones, laptops, wearables, gaming, appliances and AI - from hands-on reviews, comparison and buying guides to breaking news and in-depth features that help readers cut through the noise and make informed decisions. Before joining HT Tech, he worked with Jagran New Media, where he sharpened his instincts for fast-paced digital reporting. He holds a Post Graduate Diploma in English Journalism and Mass Communication from the Indian Institute of Mass Communication (IIMC), Delhi. Whether he's testing the latest flagship smartphone, tracking a major AI announcement, or putting a gaming laptop through its paces, Ijaj approaches every story with the same goal - making technology feel relevant and easy to understand for everyday users, not just enthusiasts. When he's not in front of a screen for work, he's usually travelling to a new city, hunting for great food, or keeping tabs on what's next in tech before everyone else catches on.

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The Hidden Cost Behind ‘No-Cost’ Deals

No-cost EMI plans promise to let buyers pay in monthly instalments without extra charges or interest. However, the term ‘no-cost’ can be misleading. Similar to free offers in other markets, such as buy-one-get-one deals or offers on social media platforms, hidden costs often exist. Often, the product price is adjusted to cover interest or fees, so customers may end up paying more than they expected.

Overspending and Impulse Purchases

Consumers often choose no-cost EMIs because they seem convenient, even if the purchase isn’t urgent. For instance, buying an electronic gadget on EMI during last year’s sale may have seemed cheaper at the time, only to find that the same product was offered at a lower price later. The perception that EMIs offer lower payments can lead buyers to spend beyond their actual needs, thereby lowering their savings and affecting their long-term financial health.

Hidden Costs Behind the Offer

No-cost EMI schemes sometimes include hidden fees. Banks may charge processing fees up to 3% of the product’s cost, and some sellers limit the ‘no-interest’ period, after which interest applies. Shoppers who overlook the fine print may face unexpected costs. The Reserve Bank of India has warned against these practices, yet many companies continue to implement them. Reading terms and conditions before committing is essential.

Impact on Credit and Finances

EMI payments count toward the minimum due on credit cards. For example, buying a Rs. 40,000 television on a 12-month EMI temporarily blocks the full amount against a Rs. 1 lakh credit limit. Missing payments can attract late fees, increase interest charges, and lower credit scores. Unlike upfront payments, no-cost EMIs often exclude cashback or reward points, adding to the financial disadvantage.

Practical Use and Considerations

Even though they are free, EMIs can still offer benefits to those who cannot pay the full amount upfront. They offer flexibility, smaller monthly payments, and quick processing. Certain credit card offers may also provide real discounts on EMIs. However, consumers should weigh the risks, hidden costs, and their financial capacity before opting for these schemes. Therefore, if you plan your purchases carefully, you can avoid unnecessary expenses while making the most of festive sales.