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In no-cost EMI, Flipkart provides an upfront discount on the total interest for the particular time period selected.
Example: Suppose there is a mobile phone priced at Rs 15,000, and we choose to purchase it with a no-cost EMI plan for 12 months with an interest rate of 16% per annum. The total interest charged by the bank would be approximately Rs 1,600. Therefore, the bank will provide an upfront discount of Rs 1,600, resulting in a final invoice amount of Rs 13,400.
Now, after receiving the product, call your bank's customer care and cancel the EMI. This is how you can get an extra discount using a no-cost EMI, effectively reducing the price to Rs 13,400.
⚠⚠⚠ Warning:
1. Not all banks will cancel EMIs for free. For instance, I tried this with my Flipkart card, and they did not impose any charges for cancellation of EMI. However, SBI imposed a 3% charge plus GST for preclosure of the EMI on my card. Always contact your bank to know the charges for EMI cancellation.
2. Repeatedly using this technique may lead to your card being blocked, potentially affecting your credit score (though I'm not sure about this one; I heard it somewhere). So, try this at your own risk.
Below are my own experiences with this discount:
1. I recently bought a Moto G54 using my Flipkart Axis Bank credit card by selecting a no-cost EMI plan for 3 months, which gave me a Rs 399 discount. After delivery, I contacted customer care and canceled my EMI. After cancellation, my processing fees plus GST were reversed, and I got it for Rs 15,601.
- Original price of mobile: Rs 16,000
- No-cost EMI upfront discount: Rs 399
- Final price on Flipkart: Rs 15,601
This is where Flipkart's part ends; now, let's look at the bank's side:
- EMI amount: Rs 15,601
- Processing fees: Rs 0
- Cancellation charge by the bank: Rs 0
- Final price I paid: Rs 15,601
I am currently not sure if reward points are applicable or not; I will update it later if I receive them.
2. I purchased another device, the Samsung A54, using my SBI Simply Click credit card with a no-cost EMI plan for 18 months, which gave me a Rs 4,200 discount on the base price plus a Rs 2,000 card discount. After delivery, I contacted customer care and canceled my EMI. The interesting part is that for canceling the merchant EMI, SBI charged me 3% plus GST on the outstanding amount and did not reverse the processing fee, which was Rs 199 plus GST.
- Original price of mobile: Rs 37,000
- No-cost EMI discount for 18 months: Rs 4,200
- Card discount: Rs 2,000
- Final price on Flipkart: Rs 30,800
This is where Flipkart's part ends; now, let's look at the bank's side:
- EMI amount: Rs 30,800
- Processing fees: Rs 199 + GST (approximately Rs 36)
- Preclosure charge imposed by SBI bank (3% + GST) - around Rs 1,100
- Final price I paid after closing EMI: Rs 32,136
These amounts are approximate,
so double-check with your bank to see if charges for cancellation are applicable or not.
If you are using this technique, choose the highest no-cost EMI available to get maximum benefits.
Example: Suppose there is a mobile phone priced at Rs 15,000, and we choose to purchase it with a no-cost EMI plan for 12 months with an interest rate of 16% per annum. The total interest charged by the bank would be approximately Rs 1,600. Therefore, the bank will provide an upfront discount of Rs 1,600, resulting in a final invoice amount of Rs 13,400.
Now, after receiving the product, call your bank's customer care and cancel the EMI. This is how you can get an extra discount using a no-cost EMI, effectively reducing the price to Rs 13,400.
⚠⚠⚠ Warning:
1. Not all banks will cancel EMIs for free. For instance, I tried this with my Flipkart card, and they did not impose any charges for cancellation of EMI. However, SBI imposed a 3% charge plus GST for preclosure of the EMI on my card. Always contact your bank to know the charges for EMI cancellation.
2. Repeatedly using this technique may lead to your card being blocked, potentially affecting your credit score (though I'm not sure about this one; I heard it somewhere). So, try this at your own risk.
Below are my own experiences with this discount:
1. I recently bought a Moto G54 using my Flipkart Axis Bank credit card by selecting a no-cost EMI plan for 3 months, which gave me a Rs 399 discount. After delivery, I contacted customer care and canceled my EMI. After cancellation, my processing fees plus GST were reversed, and I got it for Rs 15,601.
- Original price of mobile: Rs 16,000
- No-cost EMI upfront discount: Rs 399
- Final price on Flipkart: Rs 15,601
This is where Flipkart's part ends; now, let's look at the bank's side:
- EMI amount: Rs 15,601
- Processing fees: Rs 0
- Cancellation charge by the bank: Rs 0
- Final price I paid: Rs 15,601
I am currently not sure if reward points are applicable or not; I will update it later if I receive them.
2. I purchased another device, the Samsung A54, using my SBI Simply Click credit card with a no-cost EMI plan for 18 months, which gave me a Rs 4,200 discount on the base price plus a Rs 2,000 card discount. After delivery, I contacted customer care and canceled my EMI. The interesting part is that for canceling the merchant EMI, SBI charged me 3% plus GST on the outstanding amount and did not reverse the processing fee, which was Rs 199 plus GST.
- Original price of mobile: Rs 37,000
- No-cost EMI discount for 18 months: Rs 4,200
- Card discount: Rs 2,000
- Final price on Flipkart: Rs 30,800
This is where Flipkart's part ends; now, let's look at the bank's side:
- EMI amount: Rs 30,800
- Processing fees: Rs 199 + GST (approximately Rs 36)
- Preclosure charge imposed by SBI bank (3% + GST) - around Rs 1,100
- Final price I paid after closing EMI: Rs 32,136
These amounts are approximate,
so double-check with your bank to see if charges for cancellation are applicable or not.
If you are using this technique, choose the highest no-cost EMI available to get maximum benefits.
