Credit card emi

[iwantcreditcard]

Why credit card and debit card emi has so much good offer like i seen in flipkart s23 fe 50k phone which hdfc bank gives 10k discount on debit or credit emi how and why and why on emi not on simple transaction full amount

 

[helloworld]

Example:

Direct Payment:



Direct Discount: Pay 65,147 in next statement.. Overall savings 6000 = 8.43%

No hidden maths, extra calculation etc. Just pay 65,147. That's it in next statement (which is within 45 days).

------------------

EMI:


On paper, you saved 44 when compared to direct discount + you no need to pay next month, can be pay in parts to next 6 months..

but,

this is your rough breakup that you pay every month (might vary slightly for exact calculalation)..

So, Processing Fee = 199 (+GST) = 236
Interest = 2932 (+GST) = 3460

total paid = 65103 +236 + 3460 = 68,799 (-3652 when compared to direct discount = -5%)

Yep, bank can offer you exclusive discounts on EMI.. they won't loose much. (one way or another they'll benefit otherwise they'll bankrupt).