Instalment offers on phones, appliances and furniture may hide lost discounts, processing fees and taxes, leaving shoppers paying more than the cash price.
Festive sales often tempt shoppers into upgrading phones, washing machines, refrigerators and furniture, with e-commerce platforms such as Amazon, Flipkart and Myntra using deep discounts and limited-time offers to drive demand. One of the most eye-catching promotions is the no-cost EMI, which lets buyers pay in instalments rather than settle the full bill upfront. Yet the label can be deceptive. As consumer finance explainers from NDTV Profit and Moneycontrol note, the arrangement is often not truly free, because the cost of borrowing may be built into the price, offset by the loss of an upfront discount, or accompanied by fees that are not obvious at first glance.
CRIF High Mark has explained that a no-cost EMI commonly works by shifting the interest burden into the transaction in a less visible way. In one version, the customer gives up a cash discount that would otherwise lower the purchase price; in another, the product is sold at a higher headline price and the finance charge is folded into the instalments. That means the monthly payment may look manageable even when the total outlay is unchanged, or higher, than paying cash. Moneycontrol and Mint both point out that buyers should also watch for processing fees and GST on waived interest, which can further raise the final amount payable.
The appeal is easy to understand during the festive season, when households may already be juggling travel, gifting and family spending. Spreading the cost of a large purchase over several months can make an expensive item feel more affordable and help buyers preserve cash for other needs. But the same convenience can encourage people to stretch beyond their budgets. Outlook Money warns that using credit for celebratory shopping can lead to overspending, while repeated borrowing may also affect a customer’s credit profile if repayments are missed or delayed. In other words, the offer can be useful, but only when the instalments genuinely fit within a realistic monthly budget.
For shoppers deciding whether to use the option, the key is to compare the total amount payable under EMI with the price available for immediate payment. If a meaningful discount is available for paying in full, that route may still be cheaper. If the EMI plan is the only practical way to afford the purchase, buyers should read the small print carefully, checking for processing charges, tax on the waived interest, prepayment rules and penalties for missed instalments. The most important question is not whether the EMI is labelled “no-cost”, but whether the final bill is lower than, or at least acceptable compared with, the cash price.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
