# query regarding no cost icici emi

329°
CaptainLevi
Hi yesterday I did a transaction of 74000 on Flipkart at no cost emi.
Now I want to cancel that EMI and get the benefit.

I am using icici and want to get the benefit. The bill generation date is 20 oct.

I called customer care and they said the transaction is not yet converted to EMI. He told me that no charges are there. And I asked when I have to clear all dues.

He said after bill generation you can clear by due date. I think we have to clear within 5 days all dues right?

Please tell me full process guys
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I will explain here.

Yesterday someone bought s22 ultra for 66000 and 4000 was given as ncemi discount and 62000 was deducted from his card.

Now what I have understood so far is that people are cancelling this and paying 62000 upfront. And they are thinking they are saving 4000.

No. They aren't saving. Now suppose you don't cancel. Then you will pay 66000 in emis over a period of 9 months.

Now if you cancel and pay 62000 upfront. Just calculate the interest rate of 62000 at 12% per annum for nine months which comes to 5940.

So you are saving 4000 but losing 5940. Net loss after cancelling emis is 1940.

So kindly clear this misconception and don't cancel ncemi.

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Ok, but now listen. You are charged gst on interest component at 18% which is 720, so total cost over 9 months is 66,720.

Now suppose you invest 62k as per your example now, and pay 7413 emi every month. Assuming you get 12% (p2p like mobikwik or something risky only) and get 1% per month interest. You will, over 9 months, earn 620+545+472+397+323+249+175+ 101+27 = 2,909 interest (ignore taxes)

So, you will not earn 4720 of interest over 9 months, you will earn 2909 (less taxes). Making you lose aroun 2k atleast. Let me know if i messed any point

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@legend101

Even by this calculation of yours the profit is 2000 by cancelling. But it is being claimed that the profit is full 4000.

Though i would try to recalculate with an example. So that the things are much clear for people out here.

BTW, is there any cancellation charge?

And, is it very convenient to cancel?

And, what is this thing about clearing all outstanding?

Kindly answer these three queries.

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@lekhwani There are no cancellation charges. You are even refunded 200+18% gst of emi charges. Process is easy, hdfc allows through mycards online, others cancelled through call in 5 minutes. Also, you benefit 4k, you dont have to do investment in at the start of whole amount and expect 12% return constantly which not everyone can get. The profit is still 4k, but if you dont cancel and instead invest, you can benefit 2k as well. That doesnt change the original profit that the person got by cancelling emi.

Conclusion - 1. Cancel emi =4k+720gst+250emi conversion reversal = 5k profit.
2. Dont cancel but instead invest = 2k profit.
3. Dont cancel dont invest = no befefit, you get at no cost emi plus gst
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You have to clear before. Wait 2-3 days till it gets converted to emi and then call, you will get the correct info

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Ok wait till Wednesday and then call and cancel emi and after that make all outstanding on card clear by Friday...

Then I will be okay, right?

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Wait.. min. 5 days... Ur Emi will convert
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You will get mail once trxn is converted to EMI.

Call CC ask them to CANCEL EMI.

EMI will get cancelled in 2-3 days.

Pay the dues by the mentioned date in Bill generated.

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any idea how many emi allowed per month?
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How many months emi did u choose for ICICI ncemi? @CaptainLevi

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9

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There is a misunderstanding prevailing in DD regarding ncemis. Wanted to share this for long time.

It was me 4-5 yrs back who argued here to convince that ncemi is a discount.

That was a different chapter altogether.

Recently I have been seeing that cancellation of ncemis is being considered as discount or benefit while it's not.

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Can you explain how ncemi cancellation is not a discount?

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clear the total o/s of icici card as on date and make it to 0......if same get 0 before emi conversion....your memi request will get reject and will not get converted.

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As on which date
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I will explain here.

Yesterday someone bought s22 ultra for 66000 and 4000 was given as ncemi discount and 62000 was deducted from his card.

Now what I have understood so far is that people are cancelling this and paying 62000 upfront. And they are thinking they are saving 4000.

No. They aren't saving. Now suppose you don't cancel. Then you will pay 66000 in emis over a period of 9 months.

Now if you cancel and pay 62000 upfront. Just calculate the interest rate of 62000 at 12% per annum for nine months which comes to 5940.

So you are saving 4000 but losing 5940. Net loss after cancelling emis is 1940.

So kindly clear this misconception and don't cancel ncemi.

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Ok, but now listen. You are charged gst on interest component at 18% which is 720, so total cost over 9 months is 66,720.

Now suppose you invest 62k as per your example now, and pay 7413 emi every month. Assuming you get 12% (p2p like mobikwik or something risky only) and get 1% per month interest. You will, over 9 months, earn 620+545+472+397+323+249+175+ 101+27 = 2,909 interest (ignore taxes)

So, you will not earn 4720 of interest over 9 months, you will earn 2909 (less taxes). Making you lose aroun 2k atleast. Let me know if i messed any point

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Both of you didn't understand properly what i said. Sorry.

Kindly reread what i wrote 3-4 times.

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I meant suppose i buy s22 ultra for 66000 and with ncemi for 62000.

Now i will not cancel ncemi and will continue to pay ncemis. With your mention i will include gst also. Now my total outgo will be 66720.

So now i have 62000 with me. In business the finance cost is easily 10% to 15% .

This comes to 4649 to 6006.

Add this to 62000. Now it comes to 66649 to 68006.

I have not yet talked about the hassle of cancelling the emis.

And in business the returns are much higher than finance cost. I am not even talking about this.

Suppose i buy gadgets worth 5 lakhs. I will prefer to pay in 12-24 ncemis instead of paying 5 lakhs upfront and blocking 5 lakhs from my business.

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Buddies, I was specially talking from my perspective. Every person's situation might be different.

If I have easy funds lying in bank, then I can take this upfront.

But sometimes many people might not be in good liquidity condition. So paying upfront may block funds. I run a business. When we buy through desidime, and it's already a good deal like I am getting a product worth 130000 for 100000. I won't mind paying in 12 months ncemis. Even if it costs me 105000 in the end.

If you are talking about savings, I am already saving good enough 25000 whilst the other person paying upfront might be saving 27-28000.

I am happy with 25k savings and paying easily over 12 months and not blocking 100000 upfront.

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And there have been many instances like bought Samsung qled frame tv 3-4 yrs back on ncemis. Deal was already good. As we got it for 65k when the price was 95k plus

Same with LG gram laptop. And many others.

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Icici emi foreclosure charge is 3 %

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even I read it today in mitc document that they are charging 3% for foreclosure..

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If we cancel ncemi in icici then will we get 199+GST(emi conversion charges) back?

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I think answer is no. But not sure. Let ask cc.

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does any bank have the facility of no-cost EMI on the final bill generated at end of cycle (purchases at various merchants) ?

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