What is upfront discount?

What is the meaning of upfront discount?

before goods or services are received: We offer a discount to customers who pay upfront. The bank charges you a little more up front, but you’ll do better in the longer term. (Definition of upfront from the Cambridge Business English Dictionary © Cambridge University Press)

What is upfront discount on no cost EMI?

In case of No-cost EMI, you do not get any upfront discount. You must still pay Rs 50,000. However, you must pay the amount in 3,6 or 9 months. Let’s say you opt to pay in 9 months. In such a case, you will have to pay Rs 5,555.55 per month for 9 months.

Is it good to buy phone on no cost EMI?

No cost EMIs‘ is a misnomer because interest on the loan is built into the EMI except that the break up may not be clearly visible to the buyer upfront.

‘No-cost EMI’ offers on the online retailers.

Cost of Mobile Phone Rs 15,000
Total interest to be paid under EMI (In case of purchase on EMI) Rs 2,250

Is being upfront good?

Being ‘up front’ is a wonderful quality in many ways : 1) Everyone knows where you stand on any topic of conversation. 2) No need to remember what you told someone a week ago. You’re consistent and dependable.

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Is EMI good or bad?

Is an EMI scheme good or bad? Although a good EMI scheme is easy on your wallet, you must try to avoid it as the first option. You may not only be spending more than the actual worth of the product, but also splurging first and then relying on EMI payments is not healthy for your finances.

Is no cost EMI a payment mode yes or no?

A no-cost EMI offers you a plan where you can pay for a product or service in affordable monthly installments with zero interest. This means that you are only paying for the total price of the product, with no extra charges.

Why is no EMI bad?

Buying a product on EMIs reduces the burden of paying a huge amount upfront. However, when you get a product on zero-cost EMI, you may forfeit the discount that the store would have offered to you if you have paid the purchase price upfront. While other retailers may add the interest cost to the price of products.

Is GST charged on no cost EMI?

The bank will charge GST on the interest amount. … However, the interest to be charged by the bank will be passed on to you as an upfront discount at the time of your purchase, effectively giving you the benefit of a No Cost EMI. This discount excludes GST on interest amount that will be charged by your bank.

Is GST charged on EMI?

With respect to credit card EMIs, GST will be applicable on EMI processing fee and also on the interest component of your EMI. … Hence, it is always recommended to pay your credit card EMIs as and when due. Apart from this, GST rate of 18% is also applicable on all fees and charges that the bank levies.

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Who is eligible for debit card EMI?

EMI feature is available for any shopping transaction exceeding ₹ 10,000 at partnered stores. At present, this facility can be accessed by every ICICI Bank Savings Account holder and some Current Account users, provided that they have a recurring or fixed deposit (no less than Rs 10,000) linked to their account.

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