EMI Without Credit Card
Everything you need to know

In this article 

1. EMI without credit card – Everything you need to know
2. Understanding EMI
3. What is No Cost EMI?
4. Understanding credit limit
5. How does EMI without credit card work?
6. What are the non-credit card EMI options available in India?
7. Why opt for EMI without credit card with ZestMoney?
8. How to apply for EMI without credit card with ZestMoney?
9. What can be bought with EMI without credit card?
10. Frequently Asked Questions on EMI without credit card 

Before we explore EMI without credit card, what is no-cost EMI, types of EMI, what is credit limit and other concepts, let us dive a little deeper into what is meant by EMI.

1. What is EMI

EMI, as the name suggests, has to be paid on a monthly basis by the borrower to the lender, be it an individual, bank or a lending institution. 

The EMI has two components to it, the principal and interest. During the initial months, the interest component will be higher before gradually stabilising with each subsequent payment.  

While the EMI amount won’t change, the distribution between the two components – principal and interest – will keep changing with subsequent payments. As interest keeps decreasing with each payment, the principal amount keeps increasing. 

2. How is it calculated?

The formula to calculate EMI is very simple. 

EMI = P x R x (1+r)n/((1+r)n – 1)  

P = Principal loan amount, R = Rate of interest divided by 12, n = number of installments/months. 

Let us take an example to understand EMI better. You borrow Rs. 1,00,000 at 12% interest rate for a period of 120 months (10 years). 

Your EMI based on the above formula will amount to Rs 1,435. 

3. What factors affect EMI? 

The factors that directly play a role in the formulation of EMI are:

• Principal: This is the loan amount the borrower has taken from the lender  
• Interest: This is the rate of interest the lender offers the loan to the borrower.
• Tenure: The duration of the loan, within which the borrower must repay the debt in full. 

In traditional forms of financing other factors such as Age, Income, Credit Score, Existing Debt sometimes play a role in the calculation of the EMI. 

Want to buy on EMI without credit card? Sign up today with ZestMoney and enjoy the benefits.

1. What is credit limit? 

Now that we have a fair understanding of what is meant by EMI, let us dive into credit limit. According to Investopedia, credit limit is the maximum credit amount credit a lender (financial institution) can extend to the borrower. Investopedia further says that typically these lending institutions extend credit limit on a line of credit or a credit card. 

These financial institutions earmark credit limits by factoring in information about the user. This limit is something that affects the users’ credit score and can have a say on whether they can raise credit in the future. 

2. How to increase credit limit? 

Credit Limit, as mentioned above, is the maximum amount a lender extends to the borrower. However, there are certain ways to increase the credit limit. While it may not happen overnight, these are a couple of the ways to increasing credit limit as a ZestMoney customer.

• Repay on time: This is the best way to go about increasing credit limit. By repaying your current obligations and EMIs on time, there is higher likelihood of your credit limit being increased.  
• Shop more: Make use of ZestMoney’s credit by shopping at one of our partner stores. This will help you raise more credit for your future purchases.

3. Credit limit for EMI without credit card

Many traditional money lending institutions usually raise a credit against your credit card. However, ZestMoney is not like many traditional lending institutions. 

You do not need a credit card to raise credit with us. This is because millions of Indian households in India have never been exposed to any type of formal credit. 

So, how do you do EMI shopping without credit card?  

You are assigned a credit limit with ZestMoney based on a few factors. These factors are determined based on your employment and salary details and other data points; but not a credit card or even a Credit Score. 

As a new customer with ZestMoney, you will initially be eligible for a credit limit of up to Rs. 1 Lakh, which will then go up to Rs. 2.5 Lakh based on subsequent purchases. 

We have published a simpler explainer video so that you get to know all about your ZestMoney Credit Limit.

Create your ZestMoney account today to begin your guilt-free shopping spree!

Thanks to ZestMoney, you can now enjoy the convenience of EMI shopping without credit card for smartphones, fashion, travel, education, and more without much paper work or even a credit score. 

But, what is cardless EMI?

It is basically one of the types of EMI where you can raise credit to make your payments without having to own a credit card or even a debit card at times.

How does this work?

You can download the ZestMoney EMI app through your app stores and sign up with your details. Once you’ve signed up, you can make purchases and pay your EMIs despite not having a credit history or, more importantly, a credit card.

The process is very simple and completely online, which means you end up saving yourself a lot of time and paperwork. 

Let us take a look at a scenario where you are buying a laptop online from Amazon through cardless EMI.

As a customer of ZestMoney, you will have the option of using the cardless EMI facility while you checkout on Amazon after confirming your purchase.

Please note that it is the same with both Flipkart and Amazon.

So, if you are, for example, shopping for an Asus laptop, this is how you complete your purchase using ZestMoney’s 0 interest EMI:

• First select the laptop 
• Then select ‘EMI’ option on the checkout page and chose ‘ZestMoney’
• Enter your registered mobile number
• Select the repayment option (for example 6 months)
• Finally, verify the OTP received on your phone

And that’s it! You have completed the transaction on Amazon using ZestMoney’s EMI without credit card. 

Please note that you can buy a variety of things using the credit limit ranging from Groceries, Fridges, and Mobile Phones to Clothes, Washing Machines, and much much more!

Click on the link if you would like to know more about how to avail ZestMoney’s EMI without credit card on Amazon. 

Similarly, click on if you prefer to shop with Flipkart. 

Sign up today with ZestMoney and find out how to buy on emi without credit card.

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The best part, students who are not financially stable can also procure Udacity’s tutelage thanks to their EMI packages and online education loan schemes. 

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So now that you know all there is to know about no-cost EMI in India, as well as the large number of brands that offer this payment option, you can be smarter about your future purchases. 

Even if you don’t have a credit card, you can procure cardless EMI and be rest assured that your budget will remain intact and that you never have to click “add to wishlist” again!

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