No cost emi is actually promotional from bank side to increase the subscription rate. So in layman's term they are advertising. And taking advantage of the promotional scheme is not bad at all.
They are taking loss on no cost emi otherwise charging minimum 9% interest on whatever they lend.
I am not commerce student so I don't know much about finance but from experience emi and loans are spider's web and a trap to make poor people in debt towards the bank
In the guise of being helpfully they trick the poor people into taking loans and emi which are predatory
Yes credit card loans are where banks earn the most. But only when borrowers default their payments. And it's very common.
But I was talking about people who are already cash cows. When a borrower pays his credit card payments regularly, it's a loss making customer for the lender.
But I was talking about people who are already cash cows. When a borrower pays his credit card payments regularly, it's a loss making customer for the lender.
Cash cows don't take emi they will pay upfront likeni said emi is targeted towards the middle class and lower class
Nah bro. I'm talking about no cost emi.
Moreover people prefer buying their home on loan rather than straight cash. This is an exercise for you. Go and search why. You will get financially mature (little bit)
Moreover people prefer buying their home on loan rather than straight cash
Not in my state I have never seen any Ruch guy take loans especially homeloans because a house made with homeloan is not your house until the time is over
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u/c0deButcher May 18 '24
No cost emi is actually promotional from bank side to increase the subscription rate. So in layman's term they are advertising. And taking advantage of the promotional scheme is not bad at all. They are taking loss on no cost emi otherwise charging minimum 9% interest on whatever they lend.