Nitish Jha alleges that Flipkart and Axis Bank misled him with a “No Cost EMI” offer. Despite promises of zero interest, his Axis Bank credit card bill included hidden charges. Choice4Voice.com explains the scam, RBI guidelines, and how customers can protect themselves from fake EMI offers.
Complaint Summary : Flipkart & Axis Bank No Cost EMI Fraud – Nitish Jha Exposes Hidden Interest Scam
| Detail | Information |
|---|---|
| Complainant Name | Nitish Jha |
| Companies Involved | Flipkart & Axis Bank |
| Product Purchased | Refrigerator worth ₹23,149 |
| Offer Chosen | No Cost EMI on Flipkart Axis Bank Credit Card |
| Problem Faced | Hidden interest charges added in credit card bill |
| Bank’s Explanation | “If vendor gives a discount, bank charges interest. If vendor charges interest, bank doesn’t add it.” |
| Customer’s Allegation | No Cost EMI scheme is misleading and fraudulent |
| Loss Incurred | Extra interest charges in bill |
| Relief Sought | Clarity on No Cost EMI scheme and reversal of charges |
| Complaint Status | Pending |
| Original Post | LinkedIn Post by Nitish Jha |
Full Complaint Write Up
Nitish Jha purchased a refrigerator worth ₹23,149 on Flipkart using the Flipkart Axis Bank Credit Card under the “No Cost EMI” option. However, when his credit card bill arrived, he was shocked to see that interest charges were added, despite the “No Cost” promise.
On calling Axis Bank, the executive explained:
👉 “If the vendor (Flipkart) gives a discount, then the bank charges interest. If the vendor itself charges the EMI cost, then we don’t add interest.”
This confusing explanation directly contradicts the meaning of ‘No Cost EMI’. The scheme is advertised as completely interest-free, but in practice, hidden charges are passed on to the customer.
Nitish Jha has rightly called it out as a scam that misleads lakhs of customers. Many people think they are availing an interest-free EMI, but end up paying either in the form of extra interest or by losing out on discounts that could have been otherwise applied.
This raises serious concerns about the transparency of financial products and the accountability of e-commerce companies and banks.
Why This Case is Alarming
- Misleading Advertising – “No Cost EMI” is promoted as free, but often includes hidden costs.
- Bank vs. Vendor Blame Game – Customers are left confused as banks and e-commerce platforms pass the responsibility.
- Violation of RBI Guidelines – RBI has warned against misleading EMI advertisements in the past.
- Widespread Impact – Millions of Indians buy electronics on “No Cost EMI” every month.
- Consumer Awareness Needed – Most customers don’t read the fine print and end up paying more.
Questions & Answers on Flipkart No Cost EMI and Axis Bank
1. What is No Cost EMI on Flipkart?
“No Cost EMI” means you can buy a product on installments without paying additional interest. In theory, the customer pays only the product price divided into EMIs.
2. Is Flipkart’s No Cost EMI really free?
Not always. Many times, the product’s discount is removed, or the bank adds hidden interest charges. This means you indirectly end up paying extra.
3. How does Axis Bank’s No Cost EMI work?
Axis Bank partners with Flipkart. If Flipkart gives you a product discount, Axis Bank may still charge interest on EMI. If Flipkart absorbs the EMI cost, you won’t see extra interest.
4. Why did Nitish Jha call it a scam?
Because despite choosing No Cost EMI, his Axis Bank bill included interest charges, proving the scheme wasn’t truly “No Cost”.
5. Is it legal for banks to add hidden charges on No Cost EMI?
RBI allows banks to levy charges only if disclosed clearly. Misleading customers with the term “No Cost” when costs exist is a violation of fair practice guidelines.
6. Who is responsible for this fraud – Flipkart or Axis Bank?
Both are responsible. Flipkart promotes the offer, and Axis Bank executes it. If hidden charges exist, both must clarify and refund customers.
7. How can I check if my No Cost EMI is genuine?
- Compare cashback/discount price vs. EMI price
- Read the fine print on Flipkart’s EMI terms
- Check your credit card bill for interest
8. How much extra do customers end up paying in fake No Cost EMI?
It depends. Sometimes you lose a 5–10% discount, other times banks add interest charges ranging from 13%–18% annually.
9. What does RBI say about No Cost EMI?
RBI has warned that banks and NBFCs cannot mislead customers with “No Cost EMI” if hidden charges are applied. All charges must be transparently shown upfront.
10. How to complain about fake No Cost EMI schemes?
- Raise complaint with Axis Bank
- Escalate to Flipkart’s grievance officer
- File case on consumerhelpline.gov.in
- Approach RBI Ombudsman if unresolved
11. Can I get a refund of interest charged on fake No Cost EMI?
Yes, if you can prove that the advertisement was misleading and you were promised a “No Cost EMI”, you can demand reversal.
12. How common is No Cost EMI fraud in India?
Very common. Thousands of complaints are filed every year against Flipkart, Amazon, Axis Bank, HDFC, and ICICI for hidden EMI charges.
13. Is No Cost EMI the same as 0% Interest EMI?
No. 0% EMI is rare and truly free. No Cost EMI often includes hidden costs, either by reducing discounts or charging processing fees.
14. What should I do if my bank refuses to reverse EMI charges?
Escalate to:
- RBI Ombudsman
- Consumer Court under the Consumer Protection Act
- File a social complaint via platforms like Choice4Voice.com
15. Are processing fees charged on No Cost EMI?
Yes, sometimes banks add processing fees, GST, or hidden charges even if interest is not added.
16. Why do e-commerce companies push No Cost EMI?
Because EMI offers increase sales, even if customers pay more in the long run. It’s a marketing trick to boost expensive product purchases.
17. How can I calculate the real cost of a No Cost EMI?
- Take product price (without EMI)
- Compare it with EMI option price
- Add interest + processing fees
- The difference = hidden cost
18. Is Flipkart the only platform with misleading No Cost EMI?
No. Similar complaints exist against Amazon, Snapdeal, and Paytm. Banks like HDFC, ICICI, and Axis are frequently involved.
19. Can consumer court punish Flipkart and Axis Bank for such frauds?
Yes. Consumer courts can order refunds, compensation, and penalties for false advertising and unfair trade practices.
20. How do I stay safe from EMI scams?
- Always check final payable amount before checkout
- Avoid saving card details online
- Read EMI terms on Flipkart/Amazon carefully
- Prefer full payment if hidden costs exist
Final Note – Why Choice4Voice.com Publishes Such Complaints
Cases like Nitish Jha’s Flipkart–Axis Bank No Cost EMI fraud highlight how big companies sometimes mislead customers with deceptive offers.
At Choice4Voice.com, our mission is simple:
- Expose fraudulent practices by banks, e-commerce platforms, and service providers
- Give consumers a platform where their voices are heard
- Put public pressure on companies to resolve complaints
- Educate buyers so they don’t fall for hidden charges
👉 If you have faced misleading offers, hidden charges, or online fraud, don’t stay silent. Submit your complaint to Choice4Voice.com and let us make your voice heard across a larger audience.
