OK, so basically there is no 7500/- cashback (technically), they are charging the entire amount by this or that way. I am not sure if I should foreclose the loan as they told me that if I foreclose it now, I have to pay around Rs. 650/- + GST (as on TODAY) as interest from the date of purchase + I also have to clear my other un-billed transactions within 4 days of foreclosure. Overall it was good if I had to buy it in cash but to get this 7500/- OFF I had to go through EMI route.
I just purchased the TV today from the MI store:
The total bill was: TV (1,24,499) + EW (Approx 3.5k) + Delivery (.7K) = 1,29,498/-
I used HDFC card for 1,20,000 and paid 9.5K cash.
The HDFC receipt shows as follows:
Base Amount (Credit card charged): Rs. 1,20,000
Tenure 3 Months
Payback: 2.45%
Payback Amount: Rs.2940
Loan Amount: Rs. 1,17,060
[Applicable Int Rate (P.A.): 15%, or 1.25% per month]
Interest Amount: Rs. 2939.62
EMI Amount: Rs 39,999.54
Total Amt with Interest: Rs. 1,19,998.62
Apart from this I will get a Rs. 7500 Cashback after 90 Days (mentioned in the HDFC receipt)
Additional Points:
- GST extra on Interest Amount
- Convenience fee of Rs. 199 + GST
No mention of preclosure
So it looks like you will get Rs. 7.5K after 3 months, and MI is additionally paying for the interest of the loan term, so your actual cost would be Total - Interest rate.
I wonder if you take the longest tenure, and then pre-close, would you be getting a larger refund?