No-cost EMI has become one of India’s most widely used financing tools, especially for high-value purchases like smartphones, laptops, and home appliances. Marketed as a zero-interest option, the scheme allows consumers to pay for products in monthly installments without any apparent additional cost. The EMI amount, on paper, matches the sticker price of the product—making it appear like a smart, interest-free borrowing option. But as Prateek Singh, Founder & CEO of LearnApp and Zero1 by Zerodha, recently explained in a viral YouTube video, no-cost EMI is often not what consumers think it is. Advertisement

In his demonstration, Singh compared three payment methods—cash, regular EMI, and no-cost EMI—to show how costs differ. In a standard EMI, a Rs 1 lakh purchase spread over 12 months in

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