Your bank will charge you interest. However, this interest charge has been provided as an upfront discount at the time of your payment, effectively giving you the benefit of a No-cost EMI. The total amount paid to the bank during the entire EMI tenure will equal the amount paid to upGrad. E.g. Amount payable to upGrad: INR 4,05,000 Let's say the Amount deducted at the time of the transaction is INR 3,79,850 (Principal amount). The bank charges 12-15% interest per annum on INR 3,79,850. [Note: Interest factor is reducing rate and not Flat rate] EMI AMOUNT = INR 33,750 x 12 = INR 4,05,000 Effectively, you have taken a loan of INR 3,79,850 instead of INR 4,05,000