EMI Subvention/No Cost EMI



EMI subvention empowers merchant to provide an option to their customers for making total payments in easy equal installments at a zero % effective interest rate. Merchant can give this feature by providing the interest component as cashback to the payment instrument used by the customer or by reducing the principal amount itself.

Example 1: If a customer purchases a product worth Rs 60000, then the EMI subvention product will give the merchant flexibility so that the customer can pay Rs 10000 each month for 6 months.

In the case of a discount-based EMI subvention strategy, Paytm will only settle the discounted transaction amount.

Example 2: If the user purchases an item on zero-cost EMI for Rs 30,000, and there is a zero-cost EMI plan (gratification type discount) for which the bank was charging interest of Rs. 2500 over three-month tenure, then the effective order value would be Rs 27,500 only. Paytm will process the transaction which would be worth Rs 27,500.

In case of gratification type as cashback based, the transaction value would be Rs 30,000 only, as cashbacks have to be honoured by banks.


EMI Subvention Contributors


  1. Brand funded: Brand-funded Subvention is funded by a brand on their products to incentivize sales. These offers can be targeted towards specific products or categories or can be general discounts that apply to the entire product range.

    Example: No Cost EMI on iPhone funded by Apple on e-commerce websites like Amazon, Flipkart, Croma, etc

  2. Merchant funded: These offers are funded by the merchant on their platform. These offers can be on specific products or amount-based offers.
  3. Co-funded Offers: These offers are funded with the offer contribution shared by the merchant and brand on their platform. 

    Example: 70% contribution by brand and 30% contribution by merchant on No Cost EMI for Apple iPhone on Croma




Merchant needs to get the configuration for the EMI subvention options. For EMI subvention configuration, merchant needs to provide the following details. 

  1. Zero or low-cost EMI plans - Banks and tenures on which merchant would like to offer the EMI subvention schemes. Please refer to the standard EMI plans offered through the Paytm payment gateway and select the plans on which merchant would like to offer EMI subvention plans.
  2. EMI subvention strategies - Choose one of the EMI subvention strategies mentioned below. This shall be used to filter out the subvention plans applicable to user cart items.
    1. Amount-Based Subvention - Merchant need to provide the minimum and maximum amount on which the subvention can be given. Merchant just needs to send the eligible subvention amount from the total cart amount on which merchant likes to offer Zero or No-cost EMIs to their customers.
    2. SKU/Item based Subvention - Merchant needs to provide one or any combination of the different identifiers and send the same in the relevant APIs or in the config for JS checkout. The different identifiers are category id, brand id, model, and EAN number. Merchant needs to send the same parameters as configured to determine the Zero or No-Cost EMIs plans for that product.
  3. Gratification type - Merchant gratify the interest of the users either as an upfront discount or cashback at the end of EMI cycles.

 Note: Merchant needs to get the above configuration done for the EMI subvention options. Please send the email with details to their account manager or merchant may contact us.

The following parameters would be needed for the configuration of No Cost EMI:


brand_id Brand id of the product. Example: 12345. Please refer to the default brand_Ids here
category_id  Category id of the product. Example: 6789 Please refer to the default category_Ids here
model Product id/Model of the product. Example: MPUR3HN/A
Payment Instruments Example: CC EMI/ DC EMI
Bank Code Banks on which NC EMI has to be created
Tenure Tenures on which NC EMI has to be provided
Velocity conditions Number of times the user can avail the offer on the card
Gratification type The type of gratification - Cashback or discount 
Min transaction Value  The minimum eligible transaction value for which the transaction becomes eligible for an offer
Max transaction Value The maximum eligible transaction value for which the transaction becomes eligible for an offer
Valid From Start date
Valid To End date
Contribution The contribution of each of the contributors in the offer such as - brand, merchant, etc.