Help me understand the emi calculation

[vignesh30]

Hi guys
I have recently bought an iPhone in Flipkart sale with sbi simply click card and opted for no cost emi.
The total cost is 57999 and interest waived is 2776. Card was debited for 55223.

I received my statement today and the 1/3 emi comes around 19812. Please check the attachment. Here are my doubts

1. Will the emi reduce on monthly basis?
2. What will be the estimated emis for the next two months?
3. Can this more than 57999?

 

[Tejo]

Hi guys
I have recently bought an iPhone in Flipkart sale with sbi simply click card and opted for no cost emi.
The total cost is 57999 and interest waived is 2776. Card was debited for 55223.

I received my statement today and the 1/3 emi comes around 19812. Please check the attachment. Here are my doubts

1. Will the emi reduce on monthly basis?
2. What will be the estimated emis for the next two months?
3. Can this more than 57999?

When you are saying about emi amount, you should note emi amount, interest,gst separately.

55223+199(emi processing)+35.82(gst on processing)

Totally 55457.82, at 14% interest divide for 3 months see ss

 

[vignesh30]

When you are saying about emi amount, you should note emi amount, interest,gst separately.

55223+199(emi processing)+35.82(gst on processing)

Totally 55457.82, at 14% interest divide for 3 months see ss

hmmm

First check the full post and respond.. My attachment shows the breakup. 18916 EMI + 759 Int + 136 GST. Total 19812.

19812*3 = 59436 which is more than the product value i opted for no cost emi.

 

[rp0703]

Hi guys
I have recently bought an iPhone in Flipkart sale with sbi simply click card and opted for no cost emi.
The total cost is 57999 and interest waived is 2776. Card was debited for 55223.

I received my statement today and the 1/3 emi comes around 19812. Please check the attachment. Here are my doubts

1. Will the emi reduce on monthly basis?
2. What will be the estimated emis for the next two months?
3. Can this more than 57999?

Can you share Flipkart order summary screenshot where all the calculation were mentioned.

 

[4uziaul]

hmmm

First check the full post and respond.. My attachment shows the breakup. 18916 EMI + 759 Int + 136 GST. Total 19812.

19812*3 = 59436 which is more than the product value i opted for no cost emi.

Since it's a No Cost EMI, then the merchant, in your case Flipkart, has already provided you with an upfront discount. This discount is often equivalent to the interest amount that would have been charged if you had chosen a regular EMI option.

Please check the attached image for reference

 

[vignesh30]

Can you share Flipkart order summary screenshot where all the calculation were mentioned.

here is the invoice

 

[vignesh30]

Since it's a No Cost EMI, then the merchant, in your case Flipkart, has already provided you with an upfront discount. This discount is often equivalent to the interest amount that would have been charged if you had chosen a regular EMI option.

Please check the attached image for reference

correct but the actually emi should be 57999/3 - 19333 but received 19812 as 1st emi.. So the emi will reduce next month ?

 

[vignesh30]

How Can a No-Cost EMI Become Expensive? - EMI Calculator

Yes, that’s possible and it is all mathematics. In this post, let’s understand how this can happen. Before we go there, let’s do a quick recap of how No-cost EMIs work. How No-Cost EMIs Work You purchase an item worth Rs X. You opt for the No-cost EMI option (let’s say 6 months) on the… Continue...

emicalculator.net

In Short,

You get from 'that website' = only interest amount

You pay to bank = Principal + Interest (this you got) + GST on Interest + Processing Fee + GST on Processing Fee

---------

So, You pay little bit extra.

little bit extra is fine. but 1500 extra for 57999 is high..

 

[4uziaul]

correct but the actually emi should be 57999/3 - 19333 but received 19812 as 1st emi.. So the emi will reduce next month ?

EMI will remain same, since bank will charge the interest and GST.

 

[4uziaul]

little bit extra is fine. but 1500 extra for 57999 is high..

Did you receive the EMI break-up email from Flipkart, can you please share it here?

 

[rp0703]

here is the invoice
View attachment 19422

Not invoice but screenshot from Flipkart order section like this.

It clearly shows instant discount and no cost emi discount. And i think 2776 in not emi discount it also includes instant discount.

 

[vignesh30]

Not invoice but screenshot from Flipkart order section like this.
View attachment 19423
It clearly shows instant discount and no cost emi discount. And i think 2776 in not emi discount it also includes instant discount.

You are correct.. 2776 contains 1250 instant discount.. Then it is super confusing again..

 

[vignesh30]

here is the splitup,

 

[rp0703]

You are correct.. 2776 contains 1250 instant discount.. Then it is super confusing again..


View attachment 19424

Based on the actual amount you paid and emi discount I calculated emi schedule.

Your monthly EMI comes up to Rs. 18916~. For 3 emi it comes to Rs. 56748, and if you add instant discount then it's comes upto 57999~, which is the price of the phone. Now in your statement i can see 18916 but it's greyed out and also there's M written besides it. I don't know what that means. Check your statement again to see if there's any other amount debited, because your emi should be 18916 including interest amount.

 

[Deepak_Shetty]

Have you checked statement total? I think EMI amount which is shown in statement 18916.18 Rs is inclusive of interest amount 759.31 Rs. It is just a break up. GST on interest amount is separate. Please do sum of all spends in the statement.

 

[Dhruvkumar]

I think Vignesh got the answer but let me add this message here to where is hidden trick in no cost EMI.



So when you opt for No cost EMI there are 4 party involved in this
1. Merchant
2. Bank
3. Customer
4. As always government

Now in it's common knowledge that in case of no cost EMI you get upfront discount equivalent to the interest because banks makes money only on interest and processing charges.

But here the neat trick.

Assuming price of product is ₹100 and GST is 10%. In this case product gets sold to the customer and tax of ₹10 paid to government.

Now assuming merchant gives you discount of ₹10 so new price ₹90 and tax has to be paid to invoice price so ₹9 need to be paid to the government. So merchant actually gave you discount or ₹9 from his margin even though you got of ₹10 because ₹1 is come from government side.

So in case of no cost EMI mechant gives you discount(ignore other type of discounts now) of same value as interest but some part of that (GST % based on item) comes from government share but thing is this is not actually discount for customer since they have to pay intrest on discounted price so here GST gets applicable on intrest amount. So you're actually paying the share of GST which is saved by merchant and more the interest %loan and more GST % more this value is.

Now on every installment interest part is getting smaller while principal amount gets bigger so GST on interest also gets reduced so your total payment to back in no cost EMI does gets reduced somewhat after instalment.

Also you do pay extra in case of no cost EMI unless special discount is given.

 

[Deepak_Shetty]

Have you checked statement total? I think EMI amount which is shown in statement 18916.18 Rs is inclusive of interest amount 759.31 Rs. It is just a break up. GST on interest amount is separate. Please do sum of all spends in the statement.

Verified with one of my friend's statement. Your EMI is 18916.18 Rs only which is inclusive of 759.31 Rs interest. You can verify these in 'Value added services' section which will be there in the 2nd page of your statement.