Is There Any Hidden Charges In No Cost EMI?

Is it good to buy bike on EMI?

Advantages of Taking a Bike Loan on EMI Repayment tenure can extend up to five years which results in lower EMIs every month.

You can use the bike loan calculator to calculate the rate of interest and conveniently choose EMIs you can afford every month..

How is EMI calculated for bike?

Mathematically, EMI can be calculated using the following formula:{P x R x (1+R)^N / [(1+R)^N-1]} where, P = Principal amount of the loan, R = Rate of interest and N = Number of monthly installments.

What is EMI processing fee?

Processing Fee Processing Fee charged on Click An EMI is 2.5% of the purchase conversion amount or Rs. 200 (whichever is higher). Preclosure Penalty Any Preclosure of Click An EMI shall attract penalty charge of 3% on the outstanding purchase amount.

What is the difference between no cost EMI and EMI?

While buying a product on EMI takes away the burden of paying the huge cost upfront, there is always a cost that one has to bear on these ‘no-cost EMI’ schemes. ‘No cost EMIs’ is a misnomer because interest on the loan is built into the EMI except that the break up may not be clearly visible to the buyer upfront.

How much loan I can get if my salary is 60000?

If you take a personal loan for a maximum of 5 years, then your loan amount will be ₹ 36,000*12*5 = ₹ 21,60,000. However, the multiplier is 20, then the loan amount will be ₹ 60,000*20 = ₹ 12,00,000. Therefore, the amount you will get on ₹ 60,000 salary is ₹ 12,00,000.

Is it good to reduce EMI or tenure?

But it is best to reduce the tenure of the loan, provided you can afford it. “It is better to reduce tenure if you are comfortable paying the same or a marginally higher EMI. … For example, if you can pay an EMI of Rs 52,429, you can lower the tenure of your loan by two years and save Rs 8.58 lakh as interest cost.

How much EMI is safe?

While the combined EMIs of all your loans should not be more than 45-50% of the total income, home liabilities should not exceed 35-40% of the income.

What happens if mobile EMI is not paid?

– An increased interest rate: If you haven’t paid your EMIs, the lender will increase the interest rate and/or levy additional fees and charges on your loan. – A lower CIBIL score: An EMI default would lead to the borrower’s credit score being lowered, which affects his future ability to take debt.

Which bank is best for EMI?

Compare Debit Card EMI For Top BanksBankInterest ChargesProcessing FeeSBI14%NilAxis Bank14%1.5% or ₹ 150 whichever is higherHDFC Bank16%₹ 99ICICI Bank15%₹ 199

What is minimum down payment for bike?

In most cases, when you take a loan for making a high-value purchase like a car or a two wheeler, you are required to pay anywhere between 5% and 15% of the value up front, called the down payment. The bank provides the balance 85%-90% of the value as loan.

How much loan can I get on 35000 salary?

If you are taking a home loan for 35,000 salary, you can get a maximum loan amount of Rs. 20,16,481 at say an 8.5% interest rate for a tenure of 20 years. In this situation, the home loan EMI amount you would pay is not more than Rs. 17,500.

Is EMI good or bad?

Is an EMI scheme good or bad? Although a good EMI scheme is easy on your wallet, you must try to avoid it as the first option. You may not only be spending more than the actual worth of the product, but also splurging first and then relying on EMI payments is not healthy for your finances.

What is no cost EMI discount?

In 2013, the Reserve Bank of India (RBI) banned banks from offering 0% EMI scheme on retail products. … No cost EMI sounds like you don’t have to pay any interest on the loan, but in reality you do. Your bank will take back the discount in the form of interest.

How is no cost EMI calculated?

To make this a No Cost EMI offer, the interest amount will be discounted from the price of your order. Your card will be charged for the item price minus the discounted interest. The total amount you will pay to the bank (excluding GST) will be equal to the price of the item.

Can I buy bike on no cost EMI?

The Bajaj Finance No Cost EMI can be availed using the Bajaj Finserv EMI Network card. The option of no cost EMI on Bajaj Finserv EMI Network cards makes use of a pre-approved loan to purchase high-value products and prevents you paying excess on your purchase.

What is the benefit of no cost EMI?

A no-cost EMI offers you a plan where you can pay for a product or service in affordable monthly installments with zero interest. This means that you are only paying for the total price of the product, with no extra charges.

Does bank charge for no cost EMI?

While availing the no-cost EMI facility, you will not have to pay any down payment, processing fee, or an interest. Will my bank charge an interest? Yes, the bank will charge you an interest. However, the interest that they charge will be given to you upfront as a discount at the time of buying the product.