In India, is it okay to sell consumer electronics like smartphones, laptops that have been financed by EMI (Bajaj, HDB, Home Credit, Credit Cards etc) and on which EMIs are still due. I understand that in the US where your carrier is tied up with the device defaulting on EMi could lead to locking in case of smartphones. As far as I know. all these Bajaj Finserv and HDB EMI financing on electronics are more like personal loans and in case the original buyer sells it with EMI remaining, it still doesn't affect the second buyer of the used product even in case of default in future. Is this correct or is there something I'm missing?
Selling Consumer electronics which were purchased on EMI
- Thread starter justmat
- Start date
But what if i don't want to transfer the loan to the buyer (because the loan is on me and any default by the buyer would only affect my score.) If the buyer pays me full amount, does he/she have to worry about "me" defaulting on any EMI? The way I see it, the financial institutions (Bajaj Card etc) does not consider the laptop/smartphone particularly as a collateral security and is lending us the money solely on personal guarantee and credit worthiness (CIBIL, Experian etc)
It will not affect the buyer. Debit/Credit card EMI plans count as consumer durable loans which are unsecured. The lent money is solely on the basis of your credit score and profile. Transfer of loan is not required. You can preclose the loan and move on. IMO there is no need to inform the buyer in this case as it has no effect on them.
Some special cases like Flipkart's smartphone upgrade program exist. They use proprietary software installed on the phone to disable it remotely in case of payment defaults. This is similar to carrier contracts in other countries like you mentioned. There was a scam sometime back where phones purchased at 70% of the cost under this program were resold at the full price as sealed units. The buyers after a year got a prompt to pay the balance amount else the phone would be disabled.
Some special cases like Flipkart's smartphone upgrade program exist. They use proprietary software installed on the phone to disable it remotely in case of payment defaults. This is similar to carrier contracts in other countries like you mentioned. There was a scam sometime back where phones purchased at 70% of the cost under this program were resold at the full price as sealed units. The buyers after a year got a prompt to pay the balance amount else the phone would be disabled.
