Full Payment or EMIs? Which one should YOU prefer? | Personal Finance 2023 Ankur Warikoo Hindi

Is zero cost EMI actually zero cost?
How do you happen to pay the interest of zero cost EMI?

In what cases should you avail of zero cost EMI? We will learn all of this, and some small money-making tactics for you while availing of zero cost EMIs, in today’s video!

Ditto is backed by Zerodha, and with their free consultation, no-spam policy, and honest insurance advice, you can talk to experts who actually care about you.

#warikoo #emi #personalfinance

---------------------------------------------------------------------------------------------------------------------------

My bestselling books:

My gear for shooting this video:

Useful links:

The above links are on Amazon.
If you buy any of these using the above links, I stand to make affiliate income from it. 100% of this income is contributed towards the education of kids who cannot afford it. In 2021 we contributed 38L and in 2022 we contributed 53L.

Let’s connect online:

[warikoo]

Ditto is backed by Zerodha, and with their free consultation, no-spam policy, and honest insurance advice, you can talk to experts who actually care about you.

[Saursb]

Hi Ankur, the interest (simple interest) earned for the last option @5% will be just Rs 875 and not Rs 1500 as the principal will reduce by Rs 10000 each month.. Compound interest will be a bit more but nowhere close to Rs 1500. Also we should deduct tds from the total interest to come up with net earning.

[RyderNitzz]

What I'v observed with NoCost EMI is that Merchant bears the Interest fee (while overall amount we pay remains the same), what then happens in Bank Statement is that: Processing Fee is charged by the Bank with 18% GST on it, and while we do not pay the Interest amt we certainly have to pay GST on that interest amount. So essentially we pay say, for ICICI, 199+GST, and GST on Interest.

[rdias]

Why does nobody ever talk about the GST interest we still have to pay on each EMI?

[sanmakssunny]

I went to Croma and Reliance to buy a 2 door refrigerator and said, I said I will pay all amount in CASH or thru debit card. But they said there is no discount for that. They said If you buy same item in 6 month EMI no cost EMI for processing fees of Rs750 and with discount of 10% and processing fees amount too will be refunded back after 6 month . Now a days no discount for anything if you pay in full amount in cash.

[kishorekumar-rett]

The last option you may not get full 4-5% as every month there will be a pull out of ₹10k so even if we deposit in ST funds.. your interest returns is minimal...
Also for every emi on all options you still need to pay GST 😄

[jaiminmaurya]

I Would like to add some points
1) igst and cgst are charged on each emi.
2) And some banks charges you 199+gst as processing fee which is levied on first bill
3) Also many times bank charges interest and gives the interest amount back as cashback after emi tenure completes, Mostly Happens when you purchase from offline store where bank is running the offer.

[roguesecurity]

One dark side about 0 cost EMI including the 4th option is, you will be indirectly taking a loan from a bank and your details will be shared with them. So they will start spamming you with a loan and other offers in future and you will have no idea why you are getting such messages from a bank with which you never(knowingly) shared your contact.

[soumyasagarsahoo]

Hi Ankur, Great Explanation. Thanks man.

But just one clarification, is that a typo in 4:25? Instead of 1500, it is 6000...

[shreeharshabn]

Ankur Sir, there is a typo error. It should be 1500rs instead of 6000rs at 6months EMI to buy a product of 9000rs

[Raj_Das]

Purchased a TV on No cost EMI, HDFC actually gave me Rs- 10, 000 discount on the product. Also The EMI is excluded GST on interest. So the bank/store is giving me the GST on interest too.


Only negative is that I couldn't collect the credit card reward points on the transaction

[anmolverma]

There is an error at 4:37. The pricing should be 1500 for 6 months.

[meenupipat]

Thank you Ankur, it's an insightful video. One more point could have been added - GST applicable on each EMI and that is also an added burden with zero-cost EMIs.
Some correction required on a screen where break-up of 9000 in 6 instalments was showing as 6000×6. Although the verbal explanation was right, it was an error in the visual presentation.

[foodieforlife]

Interesting video. I have been following you for some time now…

However option 4 also has a catch which you missed covering.
When a credit card company offers 0% interest installments, they ensure that you continue with them for the period of the installments. The risk here is that, for any reason if you try to close/cancel your credit card, the remaining installments will be charged along with an early settlement fee. This is what many banks have started doing now, so just thought people should be aware of the single as well.

[siddharthmohapatra]

There is also IGST charged on the zero cost emi. There by incurring extra cost over and above the emi amount.

[siddhikenkre]

Thank you so much for this video! I'm tired of telling ppl that this EMI thing is a trap! Now I can just share this video 😁✌👍

[AvinashKumarBarnwalKol]

The challenge I see with the 4th option, no cost EMI, is that once you put the entire money, say 60k in some instruments say corporate bond for a year, you will have the money back (and of course the interest) by EOY. But in between you have the EMI to pay every month, which you don't have now. One has to use some extra money for that.

[Diljitsingh]

if we invest 60000 on lets say 5 to 6 percent and from where we'll pay monthly emi at the end we have to pay emi on every month

[SaurabhModh]

One more thing which is not covered...
IGST charges towards Interest Payable towards EMI.

[whyzi]

I do the opposite of the last method. I keep my phone for 3 years. So I know in advance that I am going to buy one in the coming year. So I divide the amount by 12. Invest each month as SIP. And then take out the final amount. But now I think your method is better to get more interest.