lucifer69
TF Premier
Yes, Exactly that's why I was confused. Paying 45 right now then. Last confirmation, Please ? Thanks a lot
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No Cost EMI Explained: Is No Cost EMI Actually Free?
- Thread starter TechnoFino
- Start date
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- Tags
- no cost emi
VISHESH_BANSAL
TF Pioneer
Mne comments toh read nhi ki.
But Instant payment ka bank ka jhol mujhe smjh nhi aaya.
M.hota toh Instant 1 Paisa bhi pay nhi karta.
As usual Statement Generate hoti, due date se 1 week phle pay kar de ta Statement due.
But Instant payment ka bank ka jhol mujhe smjh nhi aaya.
M.hota toh Instant 1 Paisa bhi pay nhi karta.
As usual Statement Generate hoti, due date se 1 week phle pay kar de ta Statement due.
lucifer69
TF Premier
If you're playing with the bank to avail some extra discounts by hook and crook then you gotta do bakhi ni kroge to mar to ni denge bs paise jyada lenge
Suspicious Activity
TF Premier
I love when people whip up a quick Excel spreadsheet to explain somethingIt does not work this way:
a.) GST is not for seller to keep, so it is not going to happen that GST charged by bank will be returned back to seller.
b.) All financial charges attract GST@18%. Be it normal EMI or No Cost EMI or EMI for loan taken on card, GST will always be charged on interest component. Even Processing Fee or Late payment Fee attracts GST @18%.
c.) GST varies from product to product, so if you calculate with product purchased on GST less than 18% you will always get a deficit.
Note: I am not a GST expert, some one from the field can chime in to share more details or make corrections.
I am sharing three calculations (refer snippets)
1. from my actual purchase, here I got Instant discount and NC EMI discount
2. derived from [1], I only removed the Additional discount to reflect the actual use case discussed here
3. Used same as [2] but changed GST rate to 10% to emphasize on point [c] mentioned above
VISHESH_BANSAL
TF Pioneer
Paisa bhi jada nhi lege.
If bank has to take Action, in such a case , Bank will directly Cancel the Card
lucifer69
TF Premier
If you gonna do it frequently, They'll for sure
lucifer69
TF Premier
Update :
1.) Paid 45K yesterday itself.
Payment reflected instantly and the total outstanding was 11K only
2.) However, Transaction was not settled
3.) Recieved bill in the morning with Total Amount due as 56K 🙂 and total outstanding 11K
4.) Confused about whether to pay 56K ( total amount due ) or 11K ( total outstanding) and called CC
5.) They said we aren't sure but maybe you should 11K only after 2-3 days
Note : Thanks to all for your help due to which that the product costed me 44768 and I'm only charged
Transaction done at merchant + 35 rs only
Thanks
Now you only have to pay 11k as the same is your total outstanding due as of now.
You may now or 2 -3 days later as per your convenience and then enjoy the peace of mind.😀😀
In my case, Store had an EMI offer where they gave 4.5k upfront discount on 45k item if no-cost EMI was taken (3/6 month option)
They explained me all the calculation, and said that even after paying gst on interest and emi conversion charges levied by the bank, I would still benifit as the "effective cost to customer" in POS machine was showing approx 41k something (3 month emi) I.e. approx 3.5k benefit.
when I swiped my card, the amount was 40k something (rest 600/700 was I think EMI conversion fees in the effective cost)
So, will I actually end up paying only the "effective cost" I.e. 41k something or is there any catch which was not told to me by the seller, Bank and POS machine ??
And if 41k something ampunt is actual, then I should not close my EMI right ? As I would end up paying 3% on remaining amount which would further decrease my benefit?
And if everything above is TRUE and I am getting benefited even after taking EMI, then how is it profitable ? Are they expecting people to buy on EMI and then fail to pay it back so that they can levy charges by giving some upfront discount?
I was confused and so thought of asking this here before I go ahead and take more things.
P.S.: I have more than enough capacity to pay everything in full without blinkingan eye, but chose EMI as it had upfront discount and effective cost was shows as less.
So, just wanted to get it checked here whether it was a good decision or bad ?
They explained me all the calculation, and said that even after paying gst on interest and emi conversion charges levied by the bank, I would still benifit as the "effective cost to customer" in POS machine was showing approx 41k something (3 month emi) I.e. approx 3.5k benefit.
when I swiped my card, the amount was 40k something (rest 600/700 was I think EMI conversion fees in the effective cost)
So, will I actually end up paying only the "effective cost" I.e. 41k something or is there any catch which was not told to me by the seller, Bank and POS machine ??
And if 41k something ampunt is actual, then I should not close my EMI right ? As I would end up paying 3% on remaining amount which would further decrease my benefit?
And if everything above is TRUE and I am getting benefited even after taking EMI, then how is it profitable ? Are they expecting people to buy on EMI and then fail to pay it back so that they can levy charges by giving some upfront discount?
I was confused and so thought of asking this here before I go ahead and take more things.
P.S.: I have more than enough capacity to pay everything in full without blinkingan eye, but chose EMI as it had upfront discount and effective cost was shows as less.
So, just wanted to get it checked here whether it was a good decision or bad ?
poorna.chandra.akp
TF Buzz
Recently I had availed no cost emi on xyz website few days before the billing cycle.
The transaction is converted to emi just one day before the statement date. (At this time, I called abcd bank and asked for cancellation of emi. They did not ask any questions and accepted my cancellation request.)
On the last day before statement date the loan amount is credited back, debited with first month emi principal amount, first month emi interest amount and loan processing fee.
After 2 days into the new billing cycle, the emi is cancelled and i got processing fee reversal, first month emi principal and interest reversal. Loan amount is debited again. They also credited the reward points for the transaction.
Thanks for the tip. Able to gain 16k
None of the offline channels were offering the TV at this price (even bajaj electronics)
timelines:
Statement date is 16th of every month.
09/08 -- Transaction is debited
14/08 -- transaction is credited
15/08 -- processing fee is debited
15/08 -- gst of processing fee
16/08 -- principal and interest for the first month is debited.
---------
the following transaction are appearing in the next month cycle
16/08 -- gst on interest is debited
16/08 -- transaction is debited
17/08 -- processing fee, principal and interest for the first month is credited
I think, gst on processing fee and gst on first month interest might not be credited back. But its peanuts before the savings.
The transaction is converted to emi just one day before the statement date. (At this time, I called abcd bank and asked for cancellation of emi. They did not ask any questions and accepted my cancellation request.)
On the last day before statement date the loan amount is credited back, debited with first month emi principal amount, first month emi interest amount and loan processing fee.
After 2 days into the new billing cycle, the emi is cancelled and i got processing fee reversal, first month emi principal and interest reversal. Loan amount is debited again. They also credited the reward points for the transaction.
Thanks for the tip. Able to gain 16k
None of the offline channels were offering the TV at this price (even bajaj electronics)timelines:
Statement date is 16th of every month.
09/08 -- Transaction is debited
14/08 -- transaction is credited
15/08 -- processing fee is debited
15/08 -- gst of processing fee
16/08 -- principal and interest for the first month is debited.
---------
the following transaction are appearing in the next month cycle
16/08 -- gst on interest is debited
16/08 -- transaction is debited
17/08 -- processing fee, principal and interest for the first month is credited
I think, gst on processing fee and gst on first month interest might not be credited back. But its peanuts before the savings.
Last edited:
harsh1387
TF Ace
Which bank?Recently I had availed no cost emi on xyz website few days before the billing cycle.
The transaction is converted to emi just one day before the statement date. (At this time, I called abcd bank and asked for cancellation of emi. They did not ask any questions and accepted my cancellation request.)
On the last day before statement date the loan amount is credited back, debited with first month emi principal amount, first month emi interest amount and loan processing fee.
After 2 days into the new billing cycle, the emi is cancelled and i got processing fee reversal, first month emi principal and interest reversal. Loan amount is debited again. They also credited the reward points for the transaction.
Thanks for the tip. Able to gain 16k
timelines:
Statement date is 16th of every month.
09/08 -- Transaction is debited
14/08 -- transaction is credited
15/08 -- processing fee is debited
15/08 -- gst of processing fee
16/08 -- principal and interest for the first month is debited.
---------
the following transaction are appearing in the next month cycle
16/08 -- gst on interest is debited
16/08 -- transaction is debited
17/08 -- processing fee, principal and interest for the first month is credited
I think, gst on processing fee and gst on first month interest might not be credited back. But its peanuts before the savings.
RishiKiDev
TF Ace
No cost emi on outstandings..No card issuer will give
RishiKiDev
TF Ace
Mistaken my majesty...🤪🤪
Final verdict is no card issuer will give no cost emi on your card outstandings...
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