iPhone No-Cost EMI: Thanks to EMI options, the dream of buying an iPhone has become more attainable than ever. Instead of spending a huge lump sum, you can purchase a premium smartphone by making smaller monthly payments. “No-Cost EMI” schemes, in particular, make this process even more convenient.

However, does No-Cost EMI truly come without any extra costs? Often, advertisements do not explicitly mention details regarding processing fees, GST, and credit card limits. While No-Cost EMI allows you to pay for an iPhone in monthly instalments, it does involve charges such as processing fees and GST. Let’s take a closer look at the details.

Does No-Cost EMI make the iPhone cheaper?

Let’s assume the price of an iPhone 18 Pro (256GB) is ₹164,900. Under certain bank card EMI offers, the effective price might drop to ₹157,900, with monthly payments for a 6-month No-Cost EMI plan starting at approximately ₹26,316.

However, this arrangement does not mean the phone’s actual price has decreased simply because you opted for EMI. EMI merely breaks down the payment into smaller installments; instead of paying a large lump sum upfront, you pay a specific amount each month.

Extra charges in no-cost EMI

The term “No-Cost EMI” often leads people to believe there are no additional charges involved, but that isn’t always the case. Banks charge a processing fee for converting the purchase into EMI, typically ranging from ₹199 to ₹500.

Additionally, 18% GST is applicable to the interest component. Therefore, it is a mistake to assume that the EMI figure shown in an advertisement represents the final total cost. You should carefully review the bank’s EMI details before purchasing an iPhone. It is crucial to understand the total amount you will actually pay after accounting for processing fees, GST, and other charges.

Credit Card Limit

Using a credit card to purchase an iPhone also impacts your available credit limit. For instance, if your credit card limit is ₹1.5 lakh and you purchase a phone worth ₹90,000, only ₹60,000 of your limit remains.

Calculate the total cost before opting for iPhone EMI.

Before purchasing an iPhone on No-Cost EMI, do not focus only on the monthly instalment amount. Consider the phone’s final price, bank offers, processing fees, GST, and the EMI details together.