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How do zero percent emis work ?
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<blockquote data-quote="Lord Nemesis" data-source="post: 2105163" data-attributes="member: 632"><p>As [USER=52795]@Criminal[/USER] pointed out, 0% Interest EMI schemes are banned by RBI because they amount to cheating the consumers. The processing fee and obscure charges they levy are often more than the applicable interest at prevailing interest rates.</p><p>The mindset of most Indian people is such that they will be prepared to crawl in the dust till Kasi if they hear that they will get a free lunch and often such hidden charges are overlooked/ignored.</p><p></p><p>So, no financial institution can offer 0% interest EMI schemes currently. So how do similar sounding schemes like the "No-cost" EMI scheme still exist? Simple, the ban prohibits a financial institution from offering such non-transparent schemes, so they are using a loop hole. See what they have done from the fine print.</p><p></p><p></p><p></p><p></p><p></p><p></p><p></p><p>So what they are effectively saying is that as a financial institution, they are abiding by RBI regulation and charging interest, but the brand manufacturer is giving a discount equal tot he interest charged. They are also free to charge processing fee as per their policies.</p></blockquote><p></p>
[QUOTE="Lord Nemesis, post: 2105163, member: 632"] As [USER=52795]@Criminal[/USER] pointed out, 0% Interest EMI schemes are banned by RBI because they amount to cheating the consumers. The processing fee and obscure charges they levy are often more than the applicable interest at prevailing interest rates. The mindset of most Indian people is such that they will be prepared to crawl in the dust till Kasi if they hear that they will get a free lunch and often such hidden charges are overlooked/ignored. So, no financial institution can offer 0% interest EMI schemes currently. So how do similar sounding schemes like the "No-cost" EMI scheme still exist? Simple, the ban prohibits a financial institution from offering such non-transparent schemes, so they are using a loop hole. See what they have done from the fine print. So what they are effectively saying is that as a financial institution, they are abiding by RBI regulation and charging interest, but the brand manufacturer is giving a discount equal tot he interest charged. They are also free to charge processing fee as per their policies. [/QUOTE]
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How do zero percent emis work ?
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