Question: A store is offering a "no-cost EMI" on a ₹60,000 purchase over 12 months, but charges a non-refundable processing fee of ₹1,800 upfront. Since there's technically "no interest," is this really free financing — and if not, roughly what annualized cost does that processing fee actually represent?
Answer: No — it isn't free. The ₹1,800 fee works out to an implied annualized cost of approximately 5.5% on the average amount actually outstanding over the 12 months.

Supporting evidence:
title: Inline formula / method note
quote: Standard effective interest rate computation using the average-outstanding-balance method
context: Standard effective interest rate computation using the average-outstanding-balance method.