No-cost EMIs are accelerating premium retail purchases in India

Installment offers from Bajaj Finance, banks and Amazon Pay are lowering upfront costs and driving upgrades across consumer durables. India’s consumer-durable finance market is projected to grow from $1.67 billion in 2024 to $4.73 billion by 2030.

— Source publishedThu, 17 Sept, 2026, 11:27 IST·First seen Thu, 17 Sept, 2026, 11:36 IST·Source Forbes India

What happened

No-Cost EMI is reshaping Indian retail purchasing by lowering upfront-payment barriers and supporting premium product upgrades. Bajaj Finance, banks and Amazon

Key facts

  • India consumer-durable finance market: $1.67 billion in 2024, projected at $4.73 billion by 2030
  • Projected CAGR: 19.05% through 2030
  • NBFC consumer-durable loans outstanding: Rs74,644 crore in July, up 51.5% year-on-year
  • Amazon Pay Pay-in-3 users during Prime Day 2026: more than 100,000
  • Amazon Pay No-Cost-EMI usage growth: more than 30% year-on-year
  • Bajaj Finance EMI Card franchise: 87 million as of December 2025
  • Bajaj Finance AUM: more than Rs5 lakh crore by March 2026

Why this matters

Retailers and brands should pursue deeper partnerships with NBFCs, banks and payment platforms to secure exclusive EMI offers, faster approvals and shared customer data.

What to watch

  • Monthly growth in NBFC consumer-durable loan outstanding and disbursement volumes relative to retail sales growth.
  • Early-bucket delinquency, collection efficiency and credit-cost disclosures from Bajaj Finance and other consumer-finance lenders.
  • Changes in merchant discount rates, EMI subsidy sharing, minimum transaction values and maximum repayment tenures.
  • Festive-season financed share of sales, average order value and premium-SKU mix at electronics chains and marketplaces.
  • RBI policy rates, NBFC funding costs and any regulatory scrutiny of digital lending, checkout credit or disclosure standards.
  • Amazon Pay, bank and issuer data on no-cost EMI transaction growth, approval rates and repeat usage.
  • Consumer-durable retailers will increasingly advertise monthly EMI payments rather than full product prices, especially during festive and sale periods.
  • Brands will introduce finance-exclusive bundles, extended warranties and upgrade offers to raise financed ticket sizes and attach rates.
  • NBFCs, banks and wallet providers will compete for merchant checkout placement through faster approvals, pre-approved limits and co-funded interest subsidies.
  • Retailers may reduce reliance on broad discounting because no-cost EMI can preserve headline pricing while improving conversion.
  • Demand for premium televisions, smartphones, air conditioners, refrigerators, laptops and home appliances should outpace entry-level categories where financing economics are less compelling.

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