Today we are going to unveil the Secret of EMI (Equated Monthly Installment) and ZERO Percent Interest Rate.
Gone are the days when people used to remain content with what they had. Nowadays most of the people long to have everything and anything that their neighbors have, even if it is not in their capacity to acquire those expensive things.
Well it is possible to buy / acquire / possess things beyond one’s capacity, because of two of the most dangerous tools called EMI and 0% interest.
Well let us analyse above;
Everybody must have seen the advertisements in newspapers / publications and in various stores, particularly electronic stores, which may be something, like ‘Top brand TV’s, Music players, fridge, Oven, Laptop etc. …. AVAILABLE at easy installment scheme and at 0% interest’
Well have you thought what this 0% interest is? Is it really 0%? If so, are the shop owners doing a charity by selling those expensive things to you without charging any interest?
Well before we go into the 0% interest game, let us talk about EMI. EMI is the abbreviation for EQUATED MONTHLY INTALLMENT which is calculated based on the amount of loan availed by you to acquire above things and the tenure or the period for which you are availing the loan. I am saying EMI is a dangerous thing because if you look at it from one side it is a boon as we are able to possess expensive things by paying part of the sum every month. However, what happens when you are too aggressive and try to buy all the things whether it is needed by you or not, just because you do not have to pay a lumpsum amount. When you are too aggressive in buying above expensive items on EMI then EMI becomes one of the dangerous tool, so, whenever you want to buy something never buy only because it is available on easy installments. Consider your repayment capacity and the necessity before you buy.
Now let us analyse 0% interest. You will be surprised to know that first of all it is NOT AT ALL 0%. Whenever you buy anything just because it is available on 0% interest, do not be so happy and under the false impression that you have got a bargain deal. The formula of 0% is 0% = Processing fees + 1 or 3 Advance EMI – any cash discount / bargain which you could have availed if you had purchased the same by full cash pay
Most of the finance companies charge processing fees ranging from Rs.750/- to Rs.1500/- or 1% or 2% of the value of the product. They also take one or three EMI's in advance, which actually means that you are making some down payment. You also have to take into point the truth that you will not be able to get any cash discount which you would have got had you purchased by making full cash payment, so in realty you are losing your bargaining power.
Wishing all of you a safe and healthy EMI free and 0% tension free life…