PROFX offering Finance for AV at 0% int

[alphacentury100]

Hi all.
I have been (many of us have been) waiting for a long time for the AV dealers to provide finance through 3rd parties for their AV equipments.
Now, PROFX is offering finance support for limited products through Bajaj finance at 0% interest. However the timespan, maximum limit and supported products are unknown. I have sent a mail to profx inquiring about these details. This is common in UK. IF all the sellers follow this, we would be able to buy our dream AV's a bit easily.

 

[spirovious]

That's good step.Earlier only Sumaria used to give that option & my 1st system I got paying EMI.Much needed for high-end products.

 

[anuragn]

It seems like Bajaj Finance is promoting consumer finance in a big way.
During last week, I purchased an ac and a fridge, and found that both dealers had a tie-up with Bajaj Finance. I opted for it in one of the item.
I think its a win-win situation for both the customer and the dealer. Hope more HiFi dealers start offering such schemes.

 

[gchirag]

Iv recently bought a Denon 2113 from ProFx through Bajaj Finance @0% interest. 15K downpayment & the rest in 8 EMIs.

Regards

 

[Thad E Ginathom]

I don't know about loan rates, but interest on deposits in the UK is around 10% of the rates in India. Giving 0% loans here, then, would seem to be a rather expensive prospect for the lender. Finance companies, worldwide, are capable of anything, even cutting their own throats, but I wonder what is behind this, or what is in the small print?

A good example of small-print profiteering was going on in UK a decade or three ago, with Pay nothing for one year schemes. Whilst this was interest-free, missing the due-date on the payment caused a high interest rate to apply --- and many people forgot that date.

Despite bite-induced cynicism regarding the financial industry, I am not saying that any finance company mentioned here is doing anything wrong. But I'd read the small print carefully.

 

[alphacentury100]

Pay nothing for one year schemes. Whilst this was interest-free, missing the due-date on the payment caused a high interest rate to apply .

I purchased a LED TV for my friend through Bajaj fin at 0% int and for the 1st month, we forgot to pay and they charged us a fine or interest or whatever.

 

[alphacentury100]

Iv recently bought a Denon 2113 from ProFx through Bajaj Finance @0% interest. 15K downpayment & the rest in 8 EMIs.

Regards

That is good to hear. Do they offer more than 8EMI's for expensive products?

 

[shibashis]

Running one EMI at the moment, when that finishes perhaps....

 

[ajay0722]

I purchased a LED TV for my friend through Bajaj fin at 0% int and for the 1st month, we forgot to pay and they charged us a fine or interest or whatever.

I bought my TV 1.5 years back with same bajaj finserv and did ECS, no issues, all 6 EMIs went smootly and loan is closed now..... also they provided me pre approved card upto 1L ....

 

[devilwearsprada]

I have a bajaj pre approved card too.
Got a Lumia, an HT, 2 LCD's, a refrigerator these 2 years. They are pretty smooth with the processing.

 

[Thad E Ginathom]

...also they provided me pre approved card upto 1L

Could that be the point? Getting longer-term credit-card customers?

No business is in business to make nothing: there has to be something in it for them. I'm just curious here

 

[rjstyles]

Did you guys know , BajajFinserv even provides finance on EMI for wood flooring and modular kitchens at "home town" . Was surprised when I went there looking for furniture.

OT : Wonder if profx exchanges used electronics(AVR's/subs/speakers/amps) if a customer is going in for an upgrade ?

 

[Kittu]

Did you guys know , BajajFinserv even provides finance on EMI for wood flooring and modular kitchens at "home town" . Was surprised when I went there looking for furniture.

OT : Wonder if profx exchanges used electronics(AVR's/subs/speakers/amps) if a customer is going in for an upgrade ?

They do, in exchange they give peanuts to munch ... Better sell them out side and go for an upgrade.

 

[AmitKumar]

I understand some dealers have two prices for same product, one with finance option and the other one without finance option. i faced this situation few years back at one of the famous electronics shop.

Sometime financial institution charge some processing fees instead of interest. At profx they also offer finance scheme from a well known private bank, Where it seems they charge some percentage amount as processing fees, if you calculate properly then you will find that you are paying about 1% interest per month or so.

Further in some cases dealers may compromise on their margin and pay some interest cost to financier and keep the retail price same for finance and non finance customers. this ensures higher sales. for 6 months EMI they may loose about 3 percent of the sale price.

Just my 2 cents.

 

[gchirag]

That is good to hear. Do they offer more than 8EMI's for expensive products?

Not that I am aware of..

 

[gchirag]

A good example of small-print profiteering was going on in UK a decade or three ago, with Pay nothing for one year schemes. Whilst this was interest-free, missing the due-date on the payment caused a high interest rate to apply --- and many people forgot that date.

The EMI s are done through ECS & not through post dated cheques. So the question of missing a payment doesn't arise unless you don't have sufficient funds in your account.

 

[soulforged]

While these EMI schemes look attractive and mostly go easy on the pocket despite the hidden charges/penalties etc. please keep in mind that even these go down on your credit history. Bajaj Finserv or other such financial institutions report the transactions to CIBIL. Even EMI's on your credit cards would go, if not as loans then as monthly usage of the card. Either ways, these reflect on your hunger for credit and may adversely impact your ability to secure loans for more expensive things like a car or a house.

IMHO, one should go for this only if it is absolutely necessary. For example, I bought my TV, Fridge and a couple of other appliances 3 years back when we were moving to our new house. At that time I went for the finance option with Bajaj. They for some reason processed it as two loans and that reflected in my CIBIL report.

Buyer beware!!! But then I guess you all know about this...

 

[shaiju_o_thomas]

What's wrong with credit being reported to CIBIL? If your payments are timely and there is no overdue then the credit report is favorable. Too many borrowings at the same time may be detrimental.

 

[Thad E Ginathom]

That makes sense. Referring to my motherland again, a record of loans taken and paid off in time actually makes for a better credit rating than a record of never having had a loan!

 

[soulforged]

What's wrong with credit being reported to CIBIL? If your payments are timely and there is no overdue then the credit report is favorable. To many borrowings at the same time may be detrimental.

Nothing wrong...I too was referring to the 'too many borrowings at the same time' bit...

That makes sense. Referring to my motherland again, a record of loans taken and paid off in time actually makes for a better credit rating than a record of never having had a loan!

Apparently, here too many loans, or multiple running loans are interpreted as the person being credit hungry. I used to think otherwise for a long time and used to pay through my credit card all the time as it helped me keep track of my expenses. I always paid on time had no delays whatsoever, but my CIBIL score was not what it was supposed to be!!! I did not use my Credit Cards at all for six or eight months and checked my scores again (no loan taken or closed in the interim period), my score had risen significantly...2+2=? Granted I may have misconstrued the whole game...I'm no financial guru...I'm willing to learn but at the moment this makes sense to me...

The intent of my earlier post was to state that most of the times, we get tempted by these EMI deals...indeed they help us acquire things that may otherwise seem out of bounds...in fact that's the exact reason for the EMI schemes...to entice us. But one of the flip side is what I mentioned above...the other is we end up with stuff we really did not need...BTW...one excercycle coming up for sale soon