The online shopping festival are always enticing, as merchants comes up with several offers, to allow people to shop for their favourite product at reasonable price or in EMI (Easy Monthly Instalment). The online platform has tie ups with the banking institution to make shopping affordable for the customers The bank always entices the customers with multiple schemes & offers. No Cost EMI option is one of the baits that these banks offer to their customer. The online shopping or the offline shopping always deceive the customer by offering the goods in easy instalment. Where the customer supposed to pay in instalments using their credit card rather than in lump sum. This is again a trick by the banks which a customer unable to understand. As said before, Credit card generally increases our buying power. If it is used properly then it is a boon else it is a curse.
NO Cost EMI is another trick that bank offers to the customers. It is deliberately named “No Cost EMI”. Have we ever seen Its been called as “no interest” or “interest free EMI”? If the banks had done so, then they would have been proved legally wrong in court.
How this NO Cost EMI works?
Let understand this scheme with an example of a mobile phone:
If a customer wants to buy a mobile, he/she will go everywhere and check the rate and buy from where it is less in price. But the bank does not want this from the customer. They want the customer to use the credit card and buy the phone in EMI. The first benefit of doing so is that product get more sells. Earlier when a mobile company was earning 10000 by selling 1000 mobile phones, may be now they start earning 30000 by selling 3000 phones. Because the option of EMI increases the purchasing power of the people. And if people buy more, then the mobile company earns more then they will share more with the banks.
Secondly, when the customer buys something on EMI, it works like a loan, and the customer have to pay a loan processing fee. The customers were not aware of it neither it was told to the customers. Later on when the customer receive the statement, it is written over it. This increases the cost of your mobile phone.
Thirdly, in many cases, the amount of interest is already added to the total price and as soon as you opt for the EMI option, all your offers are cancelled and in this way the prices of the mobile increases.
There is one more thing in the No Cost EMI option. If you noticed it, they first take the interest amount from us, and when the EMI is completed they return it to us by saying cash back or bonus. The noticeable point here is that If someone does not take interest from us on EMI then why would they take it first and return us later? They should not taken from day 1 , but still they take because GST is levied on the interest amount. And the amount of GST also has to be paid by the customer. This we will get to know when we receive the statement. But this thing is never told to the customer and this also increases the price of the mobile
Some credit card company give offers and, says that there will be no interest for the first 6 months, but interest will be levied on the remaining 6 EMIs. In this case these banking people cover their amount by increasing their interest rate. If suppose the interest is 12%, then they will no interest charge in the first 6 months and for the remaining 6 months a 24% interest is charged. In the EMI option we are not in position to bargain much. In this way we lose some amount adding up the cost of the product. In this way, the interest we save, we have to pay double the amount of it.
This all are about the case, where they are saying that there is no cost EMI. And where they have said that they will take interest, there it becomes more expensive. They keep the No-cost EMI on old or outdated products which do not sell. There is a simple fact of No Cost EMI which every customer must understand Sell More, Sell Fast & Sell Outdated.
By opting the *No cost EMI while shopping, the customer is actually in losses. Regarding the No cost EMI scheme, the Reserve Bank of India had to issue a public notice that this is a fraud, that most of the companies do. Many things are hidden from the customer.
So next time when you go out on shopping beware of such “No Cost EMI” offers and save some good amount and also protect yourself from being harassed for availing the loan scheme to buy the products. Be a smart buyer, and do not get trapped in various banks scheme.
THIS IS "AI FREE" ORIGINAL CONTENT. WRITTEN AFTER MY OWN EXPERIENCES.
