The three parties in every no‑cost EMI
- Customer — pays MRP in equal monthly instalments, sees 0% interest
- Merchant — funds the interest as subvention, deducted from settlement
- NBFC — earns interest funded by the merchant, plus processing fee from the customer
The math on a ₹40,000 washing machine
Example: 9‑month no‑cost EMI at an effective NBFC rate of 14% p.a. The subvention charged to the merchant works out to roughly 5.8% (₹2,320). Add 2% processing fee + 18% GST on processing fee, and the merchant's net settlement is around ₹37,262.
ZepCart shows this full breakdown on screen before the lead is submitted. Nothing hidden.
RBI stance on no‑cost EMI
RBI's 2013 circular clarified that any product marketed as 'no cost' must not hide charges. The customer's effective interest rate must be zero. ZepCart's platform validates every lead against this rule.
Frequently asked questions
Is no‑cost EMI really zero interest?
For the customer, yes. The interest is paid by the merchant as a subvention discount at the point of sale.
Are there processing fees on no‑cost EMI?
Yes. Most NBFCs charge a one‑time processing fee of ₹99 to 2% of the loan amount, plus 18% GST. This is paid by the customer.
Can any product be sold on no‑cost EMI?
Only if the merchant chooses to fund the subvention. ZepCart lets merchants enable or disable no‑cost EMI at the SKU or category level.
Want ZepCart at your store?
ZepCart onboards merchants by invitation. Talk to our team to activate no‑cost EMI, EV finance and consumer‑durable loans at your counter.
Request an invitation