Can someone please Explain the no cost emi

[keerthirahul123]

Friends

I’m planning to buy Samsung Neo Qled QN90c for my parents bedroom. I see that Amazon is offering me 5k discount coupon. I checked the no cost emi and I see that icici apay has no cost emi for 18 months.

So I read somewhere that we can call icici and cancel the emi before the emi is posted onto the CC and close the loan and still avail the discount.

So the calculation is
1,09,490
5000 - discount
12,710 - no cost emi discount

So the final costing would be 91,780 and ofcourse the 199 processing fees and may be the emi cancellation penalty ?

Is my understanding correct ?

 

[HumorSimpson]

@D₹V . .

 

[skbgp]

True. In case of HDFC they also reverse processing fees(199) excluding GST.

 

[sjmajumder]

No cost EMI means the interest that is going to be charged by the bank is given as discount upfront.

Additional charges you have to bear:

1. A processing fee may be charged by the bank. Amount differs from bank to bank.
2. GST on interest charged.
3. No RP.

You may get an option to cancel the EMI free of cost. Most bank offers this facility within the first 7 days of EMI conversion. Call your bank immediately when you see the amount has been converted to EMI and confirm if EMI can be cancelled free of cost. If it is allowed, you will save the entire discount that was given for No Cost EMI. Not sure if the processing fee is reversed or not. But in this case also you will not get any RP. So do your calculations and take your decision.

Coming to the second point, nobody generally gives 18 months no cost EMI. Max 6 months is generally offered (there may be exceptions sometimes, like in this case). In the screenshot you have given there is no offer for No Cost EMI. When it is No Cost, interest will not be shown, instead No Cost will be written in place of interest, like in the below screenshot.

 

[keerthirahul123]

No cost EMI means the interest that is going to be charged by the bank is given as discount upfront.

Additional charges you have to bear:

1. A processing fee may be charged by the bank. Amount differs from bank to bank.
2. GST on interest charged.
3. No RP.

You may get an option to cancel the EMI free of cost. Most bank offers this facility within the first 7 days of EMI conversion. Call your bank immediately when you see the amount has been converted to EMI and confirm if EMI can be cancelled free of cost. If it is allowed, you will save the entire discount that was given for No Cost EMI. Not sure if the processing fee is reversed or not. But in this case also you will not get any RP. So do your calculations and take your decision.

Coming to the second point, nobody generally gives 18 months no cost EMI. Max 6 months is generally offered (there may be exceptions sometimes, like in this case). In the screenshot you have given there is no offer for No Cost EMI. When it is No Cost, interest will not be shown, instead No Cost will be written in place of interest, like in the below screenshot.

View attachment 69443

Got it. Thank you

 

[Slayer]

True. In case of HDFC they also reverse processing fees(199) excluding GST.

Axis and ICICI too.