No Cost EMI SCAM in Telugu | EMI SCAM | No Cost EMI | in Telugu

Tharun Telugu Tech

15 Sept 202406:21

Summary

TLDRIn this video, the speaker discusses financial awareness related to 'No-Cost EMI' schemes often used during sales on platforms like Amazon and Flipkart. He explains how banks sometimes add hidden charges under processing fees and taxes on interest, which could increase the final amount paid. The speaker advises caution when opting for No-Cost EMI and suggests ways to avoid these extra costs by understanding bank loopholes and carefully reviewing transaction statements. The video aims to educate viewers on saving money and avoiding potential scams in financial transactions.

Takeaways

🔍 The video is a detailed analysis of the 'No Cost EMI' schemes offered by banks and financial institutions.
💡 It cautions viewers to be vigilant as these schemes may not always be as beneficial as they seem, with hidden charges.
📈 The presenter explains that customers opting for 'No Cost EMI' might end up paying more due to the interest accumulated over the duration of the loan.
💰 The video mentions that banks may charge a processing fee, which is an additional cost that customers should be aware of.
📉 It discusses how 'No Cost EMI' can lead to a higher effective cost than the actual price of the product due to the interest converted into EMIs.
🚫 The script advises against directly purchasing through 'No Cost EMI' without comparing the total cost.
🏦 It highlights that private banks like HDFC, Axis, and Kotak are known for their 'No Cost EMI' offers but may have extra charges.
📊 The presenter shares a personal example, calculating the actual cost of a product with 'No Cost EMI' versus the total amount paid after interest and taxes.
📝 The video script emphasizes the importance of understanding the terms and conditions, including the processing fee and interest rate, before opting for 'No Cost EMI'.
⏰ It suggests that viewers should wait for offers or discounts directly from banks to get the best deal on 'No Cost EMI'.

Q & A

What is the main topic discussed in the video?
-The main topic discussed in the video is the concept of 'No Cost EMI' and its implications on consumers, particularly focusing on hidden charges and how it affects the cost of products.
What are the potential issues with No Cost EMI as mentioned in the video?
-The video highlights that No Cost EMI may come with hidden charges, and customers might end up paying more than the actual cost of the product due to interest and additional charges.
How does the video suggest consumers should approach No Cost EMI offers?
-The video advises consumers to be vigilant and understand the terms and conditions of No Cost EMI offers, including any hidden charges, before making a purchase.
What is the role of banks in No Cost EMI transactions as discussed in the video?
-Banks play a role in No Cost EMI transactions by providing the credit facility and charging interest on the outstanding amount. However, they may not always disclose the extra charges clearly.
What are the additional charges that customers might encounter with No Cost EMI?
-Customers might encounter additional charges such as processing fees, GST on interest, and other bank charges that are not always clearly communicated.
How does the video explain the difference between actual cost and the cost after availing No Cost EMI?
-The video explains that the actual cost of a product might be lower than what customers end up paying through No Cost EMI due to the accumulation of hidden charges and interest.
What is the suggestion for customers who are considering No Cost EMI for high-value products?
-The video suggests that customers should compare the total cost of the product with and without No Cost EMI to understand the actual savings or additional costs they might incur.
Are there any specific banks or financial institutions mentioned in the video that are known for transparent No Cost EMI practices?
-The video does not specifically name any banks or financial institutions but encourages consumers to check with their banks for transparent No Cost EMI offers.
What is the advice given in the video for consumers to save money while using No Cost EMI?
-The video advises consumers to negotiate for better deals or discounts before availing No Cost EMI and to be aware of all charges to save money.
How does the video address the issue of tax on interest for No Cost EMI?
-The video addresses the issue by explaining that there is an 18% tax on the interest charged for No Cost EMI, which is an additional cost that customers need to consider.
What is the final message or call to action for viewers in the video regarding No Cost EMI?
-The final message is for viewers to be cautious and well-informed about No Cost EMI offers, to compare costs, and to negotiate for better deals to ensure they are not paying more than necessary.

Outlines

00:00

💡 Understanding EMI and Hidden Charges

The video begins by introducing the topic of financial literacy, focusing on the hidden pitfalls of 'No Cost EMI' offers during major sales on platforms like Amazon and Flipkart. The presenter explains that while the term 'No Cost EMI' suggests that there are no extra charges, banks often apply hidden fees under the guise of processing fees or interest. These are not disclosed upfront, leading to consumers unknowingly paying more than the actual product price. The speaker highlights that savvy buyers exploit loopholes in banking rules and save money, but most people fall into the trap of extra charges.

05:01

📊 How Banks Add Hidden Costs to EMIs

In this section, the presenter breaks down how private banks, especially ICICI and SBI, apply additional charges to 'No Cost EMI' plans. He provides a detailed explanation of how banks use processing fees, ranging from ₹200 to ₹300 plus GST, and how these fees add up. The video discusses the example of a ₹40,000 product where, despite discounts, hidden charges such as interest and taxes are applied, inflating the total cost. The presenter advises viewers to be cautious and to call their bank to confirm whether additional taxes or interest are being charged, even when availing of 'No Cost EMI'.

Mindmap

Keywords

💡No-Cost EMI

A financing option where customers can purchase a product in installments without paying additional interest. In the video, it is explained that while it appears as 'no cost,' hidden charges like processing fees and taxes can inflate the cost. The video discusses how banks use this tactic to charge more than the advertised amount.

💡Hidden Charges

These are costs not explicitly disclosed upfront to the consumer but added later in the transaction. The video explains how banks apply these charges in 'no-cost EMI' schemes through fees like processing fees or taxes, which increase the total amount a customer ends up paying.

💡Processing Fee

A one-time charge imposed by banks or financial institutions for handling a loan or EMI application. The video mentions that banks often charge a minimum of ₹200 plus GST as a processing fee in no-cost EMI transactions, which is one of the hidden costs.

💡Interest

The cost of borrowing money, usually a percentage of the loan amount. Although 'no-cost EMI' is marketed as interest-free, the video explains that banks often adjust the product price or add hidden charges that effectively function as interest.

💡RBI Guidelines

Regulations issued by the Reserve Bank of India to govern financial transactions, including loans and EMIs. The video highlights that under RBI guidelines, no EMI should be interest-free, but banks use loopholes to present schemes as 'no-cost EMI' while still charging extra.

💡Private Banks

Banks like HDFC, Axis, and Kotak mentioned in the video as the ones providing no-cost EMI options. The video suggests that these banks offer more hidden charge schemes compared to public sector banks like SBI, which are more transparent.

💡Loop Holes

Gaps or ambiguities in laws or guidelines that companies exploit for financial gain. The video describes how some knowledgeable consumers can exploit loopholes in no-cost EMI schemes to save money, while most others unknowingly pay extra.

💡GST

Goods and Services Tax applied to products and services, including hidden fees in financial transactions. The video talks about how GST is applied on processing fees and interest, further increasing the cost of 'no-cost EMI' transactions.

💡EMI Schedule

A plan that outlines the monthly payment amounts and durations for an EMI purchase. The video explains how different EMI schedules affect the overall cost, with extra charges sometimes being added to each installment.

💡Discount

A reduction in the price of a product, often used to attract buyers. The video explains that while some 'no-cost EMI' schemes offer discounts, these are often nullified by the hidden charges or interest applied later.

Highlights

The video discusses the importance of being vigilant about financial topics that may not seem exciting but are crucial.

It mentions sharing the video with friends if they are interested in financial topics like No Cost EMI.

The video talks about the popularity of No Cost EMI on platforms like Amazon and Flipkart.

It explains that many people are paying cash for purchases during sales, which is more than those using EMI.

The video highlights that customers are more inclined to purchase without interest if they are told the product is interest-free.

It points out that banks may charge hidden fees without the customer's knowledge.

The video discusses the RBI guidelines regarding loop holes in No Cost EMI.

It explains how some people save a significant amount by using No Cost EMI instead of traditional EMI.

The video provides an example of how much one can save by using No Cost EMI on a product worth ₹40000.

It mentions that some banks offer No Cost EMI without any extra charges.

The video explains the concept of processing fees and how they are applied by different banks.

It provides a detailed breakdown of costs associated with No Cost EMI, including taxes.

The video suggests ways to avoid extra charges when using No Cost EMI.

It gives advice on how to negotiate with banks to avoid extra charges on No Cost EMI.

The video mentions that some banks are more transparent about charges associated with No Cost EMI.

It provides a comparison of different bank's No Cost EMI offers and their associated charges.

The video concludes with a call to action for viewers to subscribe for more informative content.