Foreclosing No Cost EMIs

Foreclosing No Cost EMIs

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Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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1094
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Hi guys.
So this No cost EMI is everywhere now. Just wanted to get your opinion on how many people are opting for fore-closing the EMI? No cost EMIs provide upfront discount for the interest which you can get in your pocket just by simply closing the EMI as soon as it is opened by bank.

What has been you experience with the banks?
How easy was to deal with the bank to get your EMI closed?

Did you try the same with Debit card no cost EMIs?

22 Comments  |  
10 Dimers
Sco
Deal Lieutenant
1,760
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I tried it many times. Normally i will close it after paying 1st month installment. SCB credit card.

Not tried with debit card EMI s

Missing
Deal Cadet
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why would you wanna close it if its not costing you anything plus you get time to pay. unless you want that credit amount freed up for something else

Giphy
Deal Cadet
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schumacher wrote:

why would you wanna close it if its not costing you anything plus you get time to pay. unless you want that credit amount freed up for something else

He is talking about those EMI where mercharchant give exact amount of discount of total interest to be paid to bank . You see you get total interest discount on product and cancell the EMI with bank .so you wont pay that interest part to bank . But I think Bank will charge a foreclosure charge still a profit you earned .

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Deal Cadet
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Puchka wrote:

He is talking about those EMI where mercharchant give exact amount of discount of total interest to be paid to bank . You see you get total interest discount on product and cancell the EMI with bank .so you wont pay that interest part to bank . But I think Bank will charge a foreclosure charge still a profit you earned .

there is a 2% foreclosure charge on the remaining account

Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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schumacher wrote:

why would you wanna close it if its not costing you anything plus you get time to pay. unless you want that credit amount freed up for something else

Let me clear this up:

Lets say you took a no cost emi of 6 months for a product of 30,000.
Merchant to provide a no cost emi will provide an upfront discount of amount that will sum up as interest on 30k for 6 months paid as emi for an interest rate of 12-14% (varies bank to bank)
For 30k, it will vary from Rs. 900-1100 which is quite good discount for the fact that you just chose to pay via EMI.
Merchant will charge your emi provider with (30k – emi discount).

Now if you have 30k inhand, you can just tell your bank that I want to close this loan (emi) and get that discount in your pocket.

Why pay bank 12-14% interest when you have an option to not pay them..

Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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goelamit wrote:

there is a 2% foreclosure charge on the remaining account

My experience with ICICI was good and they did not charge any foreclosing charge.

I did it twice and they were quite ready to close the emi.

Which bank asked you for 2%?

Sco
Deal Lieutenant
1,760
4447
70
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Puchka wrote:

He is talking about those EMI where mercharchant give exact amount of discount of total interest to be paid to bank . You see you get total interest discount on product and cancell the EMI with bank .so you wont pay that interest part to bank . But I think Bank will charge a foreclosure charge still a profit you earned .

Standard chartered wont charge preclosing charges. Done more than 10 times.

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Deal Cadet
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Offerer wrote:

My experience with ICICI was good and they did not charge any foreclosing charge.

I did it twice and they were quite ready to close the emi.

Which bank asked you for 2%?

yes bank

Missing
Deal Cadet
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Offerer wrote:

My experience with ICICI was good and they did not charge any foreclosing charge.

I did it twice and they were quite ready to close the emi.

Which bank asked you for 2%?

So you saved the interest amount? Which means, you get a discount upfront and also save the interest amount by foreclosing

Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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schumacher wrote:

So you saved the interest amount? Which means, you get a discount upfront and also save the interest amount by foreclosing

I explained it in detail in previous post.
Gist: I save the discount which is provided against interest that will be charged by paying the complete amount initially.

Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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goelamit wrote:

yes bank

Good that their stock plumped. Really bad on bank’s part.
Anyone else with similar experiences with yes bank or any other banks asking foreclosing charges?

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Deal Cadet
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Sbi is charging 3%

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hiteshu wrote:

Sbi is charging 3%

HDFC is also charging 3%.

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Deal Subedar
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hiteshu wrote:

Sbi is charging 3%

Thanks for the contribution.

We can list down which banks are charging what amount for fore-closing EMIs.
Though this charge seems totally unjustified (I took a loan, now I have money to repay it, why are you asking me more money than I owe till date?)

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Deal Cadet
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what about hdfc ?? has anybody tried ?

Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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abhinavagg94 wrote:

what about hdfc ?? has anybody tried ?

My friend took no cost EMI on Debit card but he is not able to get it closed.
HDFC guys are telling him that you cannot close emi before 3 installments.

Not sure what is the experience with other people..

Void warranty
Deal Cadet
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I’ve been doing this research on my cards with lot of “No Cost EMI” offers in recent sales. Here are my findings by talking to each customer care:

  • Citibank Credit card:
    Citi is the best – the EMI transactions can be cancelled/foreclosed anytime with outstanding amount charged to the statement. No charges.
  • HDFC Credit card:
    No cancellation of EMI available, but EMI transaction can be foreclosed for zero charges with a big condition – need to pay complete card outstanding along with foreclosure amount within 3 days (if you’ve multiple EMI transactions running, you’ve to close all of them along with the foreclosed transaction)
  • ICICI Credit card:
    Cancellation of EMI possible for free within 15 days of transaction with transaction amount charged to statement. After 15 days, foreclosure charges of 3% + current month EMI interest apply.
  • SBI Credit card:
    No cancellation of EMI. Foreclosure is possible at any time with 3% foreclosure charges (mostly useless).
  • Yes Bank Credit card:
    No cancellation of EMI. Foreclosure is possible at any time with 2% foreclosure charges (mostly useless).
Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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ivoidwarranty wrote:

I’ve been doing this research on my cards with lot of “No Cost EMI” offers in recent sales. Here are my findings by talking to each customer care:

  • Citibank Credit card:
    Citi is the best – the EMI transactions can be cancelled/foreclosed anytime with outstanding amount charged to the statement. No charges.
  • HDFC Credit card:
    No cancellation of EMI available, but EMI transaction can be foreclosed for zero charges with a big condition – need to pay complete card outstanding along with foreclosure amount within 3 days (if you’ve multiple EMI transactions running, you’ve to close all of them along with the foreclosed transaction)
  • ICICI Credit card:
    Cancellation of EMI possible for free within 15 days of transaction with transaction amount charged to statement. After 15 days, foreclosure charges of 3% + current month EMI interest apply.
  • SBI Credit card:
    No cancellation of EMI. Foreclosure is possible at any time with 3% foreclosure charges (mostly useless).
  • Yes Bank Credit card:
    No cancellation of EMI. Foreclosure is possible at any time with 2% foreclosure charges (mostly useless).

Thanks for such an elaborate response. I’ll help everyone in future.

Offerer   google search 2019 01 21 15 08 00
Deal Subedar
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1094
25

Amex also forecloses emi without any charges

Missing