Will There Be No More 0% EMI Schemes?

by Paul Joseph on September 24, 2013 · 0 comments

It seems – and we don’t know this for sure – that RBI is not happy about 0% EMI schemes. In these schemes, people pay on a regular basis (monthly), a smaller amount, rather than the full amount upfront. The 0% means they pay no interest, supposedly, so something that costs Rs. 40,000 can be paid in 10 months with Rs. 4,000 per month. RBI doesn’t like this because banks, while offering such schemes, increase the “processing fee” to a high amount, which effectively is higher than the interest paid. These schemes are typically on a credit card and the …

[via Capital Mind]

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