With the festive season underway, no-cost EMIs on credit cards are once again dominating the Indian shopping landscape. The facility allows customers to buy premium products and spread payments across convenient monthly instalments, seemingly without any added interest. From smartphones to laptops and TVs, the idea of “pay later without paying more” feels like free money. But is it really? Advertisement

According to Chartered Accountant Nitin Kaushik, who recently shared insights on X (formerly Twitter), the numbers reveal a different story. “On Amazon Prime Day, 25% of sales happened through EMIs, and of these, nearly 90% were on no-cost EMI,” he noted.

The hidden costs

Take the example of Rohan, who bought a Rs 1.28 lakh laptop on no-cost EMI. His bank offered him an Rs 8,000 discoun

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