Are no-cost EMIs really free?

No. Under RBI guidelines, banks cannot offer zero-percent interest. The interest amount is given as an upfront discount, but you still pay 18% GST on the interest and processing fees.

What is a debt premium?

The debt premium is the difference between the total payments made under the EMI option and the upfront cash price, showing how much extra you pay for convenience.

Cost of Debt Calculator

See the true cost and debt premium of buying an item on EMI.

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Documentation

Quick Summary: Cost of Debt Calculator

Buying on EMI often hides the 'debt premium'—the extra cost over the cash price. For FY 2026-27, even 'no-cost' EMIs carry hidden processing fees and 18% GST on interest, making the item 3-7% more expensive. This tool reveals the true interest rate.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.