What Is No Cost EMI on Credit Cards? Complete Guide 2026

Imagine scrolling through your favourite shopping app and spotting the perfect phone or washing machine. The only problem — it costs more than your monthly budget. That is when you see an option that reads “No Cost EMI on Credit Card.” It promises easy instalments without interest, making the decision much lighter on your pocket.

In the coming year, No Cost EMI on credit cards is expected to become one of the most preferred payment options in India. It allows you to pay for products in simple monthly parts without paying extra. This blog explains what is no cost EMI on credit card, how it works, and what updates banks like ICICI, HDFC, SBI, and Axis are expected to introduce by 2026.

What Does No Cost EMI on Credit Card Mean?

A No Cost EMI on credit card means splitting your purchase into smaller monthly payments without any added interest. Normally, EMIs on credit cards include interest, but in this case, the seller or bank bears that cost.

In simple words, you pay only the actual product price in instalments. This option is popular on sites like Amazon, Flipkart, and Croma, especially during festive or clearance sales.

How Does No Cost EMI Work on Credit Cards?

Here is how no cost EMI on credit card typically works for online and offline purchases.

Step-by-step process:

• Step 1: Add your product to the cart on an eligible platform.
• Step 2: At checkout, select “Credit Card EMI” and look for “No Cost EMI.”
• Step 3: Choose your bank (HDFC, ICICI, Axis, or SBI) and preferred tenure.
• Step 4: Confirm payment — your bank converts the purchase into EMIs automatically.
• Step 5: The EMI amount appears in your monthly credit card bill.

Once the full amount is paid over the tenure, the transaction closes automatically.

Example:
Buying a TV worth ₹60,000 on Amazon using an HDFC Credit Card No Cost EMI

• Choose 6-month No Cost EMI
• Pay ₹10,000 per month
• Total = ₹60,000 (no extra cost)

How No Cost EMI Works on ICICI, HDFC, SBI, and Axis Bank Credit Cards

Each bank follows a similar process but may vary in tenure and eligibility.

Before choosing a plan, always check:

• Product eligibility for No Cost EMI
• Tenure options available for your card
• Whether any processing fee applies

Expected Updates for 2026

By 2026, several new features are likely to be added to no cost EMI on credit cards. Banks may bring:

• EMI options for more products beyond electronics.
• Flexible payment plans for expensive items.
• Real-time EMI conversion using mobile apps.
• Clearer display of charges under new RBI norms.
• One-step EMI selection on all major shopping sites.

These changes will make no cost EMI easier to use and more secure for customers across India.

Benefits and Drawbacks of No Cost EMI on Credit Cards

Now that we have covered everything regarding No Cost EMI on Credit cards, let us also look at the pros and cons it offers:

What are the Charges in No Cost EMI?

Even though the name says “No Cost,” small fees may apply depending on the bank or merchant.

Possible charges:

• Processing fee: A one-time fee (₹100–₹500) may apply for certain cards.
• GST: Some merchants include GST on the interest portion absorbed by the seller.
• Pre-closure fee: A small charge if you decide to close the EMI early.

Always check the total amount shown during checkout before confirming your payment.

Conclusion

Managing expenses does not have to stop you from buying what you love. No cost EMI on credit cards lets you spread your payments with ease and no extra interest. As these offers grow stronger in 2026, take a moment to review all details before confirming. If you want quick approvals and smooth EMI management, My Mudra can help. It offers simple, reliable, and instant no cost EMI offers that make your next big purchase easier and lighter on your wallet.

Also Read:
- Is No Cost EMI Really Free in 2026? Hidden Charges Explained
- Best Credit Card for Online Shopping in India