International Journal of Scientific Research and Engineering Development

The growing availability of no-cost Equated Monthly Instalment (EMI) schemes has significantly influenced consumer purchasing behaviour in India. These schemes allow consumers to buy goods and services in interest-free instalments, making high-value and discretionary products more accessible. This study uses secondary data to examine the expansion of no-cost EMI schemes and their effect on consumer spending across different sectors and demographic groups.Data for the study is drawn from reputable sources such as the Reserve Bank of India (RBI), National Sample Survey (NSS), industry reports, and financial institutions. The analysis focuses on trends in the adoption of no-cost EMI schemes, sectoral distribution, and changes in spending patterns over recent years.Findings suggest a substantial shift from traditional credit options to interest-free EMI-based financing, driven by rising disposable incomes, the growth of digital lending platforms, the increasing presence of non-banking financial companies (NBFCs), and the widespread use of consumer electronics, vehicles, and lifestyle products. The study also highlights how digital innovations and app-based credit solutions have expanded access to credit, particularly among young and first-time borrowers. Overall, no-cost EMI schemes have boosted consumer spending, reshaped purchasing behaviour, and enhanced financial inclusion, while also raising concerns about overindebtedness and repayment pressures.

Sharon Mary R,"A Study on the Expansion of No-Cost EMI Schemes and Their Impact on Consumer Spending in India: A Secondary Data Analysis" International Journal of Scientific Research and Engineering Development, V9(1): Page(485-492) Jan-Feb 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.