the writer has not explained in detail the actual facts and figures behind "zero interest emi" the rest of the information is known to everybody the writer need to explain how is the consumer losing and bank and manufacturing is benefited in detail
Re: Where is the Catch
by subra on Oct 06, 2013 05:10 PM
The Bankers are educated cheaters ,legally cheating customersand making money zeroEMI-bank gets 2-3% cut from sellers,apart from manufacturer.apart,the real income starts when customers fail to pay single or anyone EMI,he will be royally robbed RBI not only should stop these schemes,should also stop educated cheaters of banks in all areas
Everybody knows the companies pay interest amount to the banks. I have enquired the products are available with rare differences in price. If you are getting it with EMI with out interest and processing fees its a good deal. I have purchased 2 products on EMI linked to my credit card. I got a good deal in comparison to Rs 100 - 300 cash discount. Afterall a rupee today in your pocket is more important than pay all the amount at once. It is not compulson and the scheme is not closed only the interest amount is to be communicated to the customer from now onwards.
The whole matter is about transparency between the banker and customer which is the domain of the RBI.
If the manufacturer or dealer or shop owner is offering zero percent EMIs the RBI doesn't have any problem.
But here the agreement is between the banker and the customer for availing credit.
Hence, the customer must know and the banker, for a healthy banking system, must disclose the cost of the credit i.e. interest rate.
Even after this, nothing changes.
The actual cost to the customer does not go up; it remains the same.
The only difference is the customer comes to know that he is getting say a 10% upfront discount which he was not getting before and paying 15% interest on the 90% cost of the product.
RBI is right in this matter as it has to govern the banking sector for a robust and a healthy system.
RBI as a regulator is not bothered about sales coming down or up because of its policies which is its responsibility.
