What is "no-cost EMI" and its hidden charges? I am Noob in CC

I am going to get my first Credit Card and I dont want to get slapped by Hidden charges and “fine print charges”.Please anyone from finonja community enlighten me..

A lot of people seem confused about how no-cost EMI’s work. So here is an example of how it works and a trick that I use to maximize my savings ( No I don’t foreclose the EMI, it’s very risky )

Lets say you want to buy a laptop that costs Rs.1,10,000/-. Assume there is a card discount of 10,000 on full payment and EMI payment both. Your final price to pay will become Rs.1,00,000/-. You decide to pay by EMI.

Normal EMI Calculations:

Amount - 1,00,000

Interest - 16% per annum ( for most cards )

Tenure - 12 Months

Processing Fee - 199 + GST = Rs.235 ( for most cards )

Outstanding Amount Principle Interest GST Installment
1,00,000 7739 1333 239.94 9302.94
92,260 7842 1230 221.4 9290.4
84,417 7947 1125 202.5 9275.5

and so on.

Total extra amount paid = Interest + GST + Processing = 8877 + 1598 + 235 = 10710

So, a normal EMI would cost you Rs.1,10,710 after the last installment.

Now lets understand the same for No-Cost EMI.

Amount - 1,00,000

Interest - 16% per annum ( for most cards )

Tenure - 12 Months

Processing Fee - 199 + GST = Rs.235 ( for most cards )

Interest Amount as Discount = Rs.8,153. Try to understand this, you are given a discount on the total amount, such that you get a amount which when charged 16% interest will give the bank Rs.1,00,000. Here the discount is of 8153, so basically you are getting a normal EMI of amount 91,847. You card will deduct 91,847 from your limit and charge you 16% interest on this amount so that at the end, you pay a total of 1,00,000. Hence the name no-cost EMI. You don’t have to pay anything extra, at least till Nirmala Tai enters the chat.

Outstanding Amount Principle Interest GST Installment
91,847 7108.7 1224.4 219.3 8552.7

and so on. Similar to normal EMI calculations.

Total extra amount paid = GST + Processing = 1467 + 235 = 1702

So, a no-cost EMI would cost you Rs.1,01,702 after the last installment. Basically, a loan at 1.7% simple interest or 3.15% per annum.

I hope this post helps.

Edit - I’ve added in the comments how I maximize my returns using no-cost EMI. Constructive Criticism is welcome.