• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Site Logo

BasuNivesh

Personal Finance Blog

  • Home
  • Service
    • Fee-Only Financial Planning Service
    • Financial Wellness Session
  • Blog
  • Old Articles
  • About Us
  • Contact us
  • Media
  • Search

Univercell UMI (Univercell Monthly Installment) Offer-False claim of 0% interest !!!

October 1, 2014by Basavaraj Tonagatti

It is festive mood across India and we are all very much eager to buy home appliances or mobile gadgets on these auspicious days. So few consumer durable companies or intermediaries offer you banned 0% interest in different format. Once such offer is Univercell UMI.

Univercell UMI

Recently, while crossing the road I came across Univercell Showrom, which highlighting the offer called 0% UMI. With eager (not to buy, but to know more about ZERO PERCENT OFFER), I visited the showroom and found some interesting and banned loan offerings.

What is this Univercell UMI?

When I visited the showroom and asked for this offer, they gave me a contact number of Bajaj Financial Service executive. So I called him and found that it is actually a Bajaj Financial Service offer to Univercell customers (which sells mobiles and accessories). Below are the features, which shared by an executive.

  • ZERO PERCENTAGE interest rate!!!
  • This is from Bajaj Financial Service.
  • This offer is not for all mobile phones. However, to selected few models.
  • One must have minimum Rs.20, 000 take home monthly salary.
  • One must have Bajaj Financial Service EMI Card.
  • If you have credit card then they will offer you lesser interest rate (Not disclosed how much lesser as he found me asking so many questions without zeroing on the mobile phone I am planning to purchase).
  • Offer explained to me with an example as… Suppose you planned to buy Rs.10, 000 valued mobile phones then initially you need to pay first month instalment i.e. Rs.1, 000 (because the loan tenure is 10 months) +Rs. 750 as processing fees. So initially I need to pay Rs.1, 750 and for the next 9 months it will be monthly Rs.1, 000 only!!!

Legality of this offer–

Previous year RBI banned such loan offers which claim to be ZERO percent interest. Because such zero percent loan not at all exist. In return, lenders used to collect higher interest rates in the name of processing fees. This deal for many of us looks like a great offer. However, in reality it is nothing but one type of paying your interest in advance for your loan. Therefore, this is nothing but a scheme to allure customers as if they are offering you the product at cheap zero percent interest.

So how much it really cost you?

Before understanding how much it costs you, first let us understand the concept of APR or Annual Percentage Rate. Usually when you apply for a loan, along with interest rate lenders also charges some fees which are non refundable. The loan APR considers these costs along with an interest rate and will give you an exact cost of loan on annual base.

So the loan APR actually provides you the cost of your loan in terms of percentage on yearly base. When we consider above example, like I am planning to buy Rs.10, 000 mobile phones and for that initially I am paying Rs.1, 000 (First EMI) +Rs. 750 (Processing Fee). Then for the next 9 months I will be paying Rs.1, 000 monthly. When we calculate the Annual Percentage Rate of this, then this ZERO PERCENT LOAN will actually cost me 19.58% per year. You too can play with calculator by visiting HERE.

APR

RBI banned the zero percentage EMI scheme. However, few shops offer you with different name but with the same concept, which is called ZERO PERCENTAGE. Whatever may be named, whether it is EMI or UMI, concept of loan is same and features differ to attract customers. Hope you do your homework before falling into such traps.

Category: Banking, Investment PlanningTag: Annual Percentage Rate, APR, Univercell UMI Offer

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

Previous Post: « Are you really educated?
Next Post: Flipkart’s The Big Billion Day Offer-Is it really a good deal? »

Reader Interactions

Comments

  1. Mythili

    June 29, 2017 at 7:50 PM

    Hi, am Mythili from KK Nagar. I want to buy Redmi mobile. But my salary is 15K only. So how can I buy the mobile in EMI

    Reply
    • Basavaraj Tonagatti

      June 29, 2017 at 9:00 PM

      Mythili-Same cross question to you “Whether this is NEED or WANT for you?”

      Reply
  2. Shanmukha

    February 5, 2017 at 11:12 AM

    Hello
    This is shanmukha, I want to buy Redmi 3s prime gold 32 GB on emi basis. My net salary is 20700. What can I do

    Reply
    • Basavaraj Tonagatti

      February 5, 2017 at 12:10 PM

      Shanmuka-Best plan is to create an RD in Bank. Accumulate and then buy it. Never be in the trap of EMI.

      Reply
      • siddhesh

        May 8, 2018 at 2:00 PM

        Hi Basavaraj Tonagatti,

        Dude lets take the example you given…where do you see the single rupee interest….the only you pay extra is the processing fee…

        Reply
        • Basavaraj Tonagatti

          May 8, 2018 at 7:15 PM

          Dear Siddhesh,
          Increasing processing fee and claim ZERO interest is just gimmick. If you are unable to understand that one, then sorry to say that you don’t know how they are profiting by lending you money at FREE.

          Reply
  3. Thangam

    June 3, 2016 at 2:10 PM

    I want to buy samsung galaxy j7 but in dont have credit card and bajaj card also please help how i can buy thru emi

    Reply
    • Basavaraj Tonagatti

      June 3, 2016 at 5:00 PM

      Thangam-Best option is to accumulate cash and then buy.

      Reply
  4. Archana

    January 24, 2016 at 12:43 AM

    buying mobile through EMI is good r bad…. ? Iam totally confused by seeing the comments plzzzzz help me out

    Reply
    • Basavaraj Tonagatti

      January 24, 2016 at 12:26 PM

      Archana-Anything that is called buying through EMI is totally BAD. EMI meant for profit to lender (Bank) but not YOU. Accumulate amount then buy it that too only if it is necessary. Electronic goods are not assets but liability.

      Reply
  5. Adarsh

    January 12, 2016 at 4:33 PM

    i am planning to buy samsung j7 in emi , and i dont have any credit cards. so please guide me….

    Reply
    • Basavaraj Tonagatti

      January 12, 2016 at 6:06 PM

      Adarsh-Save…Invest…Once accumulated, then go for shopping.

      Reply
  6. Naresh M

    January 11, 2016 at 12:48 PM

    I want Sony m4 aqua instalment without credit card. What’s u need documents please guide me sir

    Reply
    • Basavaraj Tonagatti

      January 11, 2016 at 7:24 PM

      Naresh-I am not lender 🙂

      Reply
  7. P Udayakumar

    December 21, 2015 at 11:26 AM

    sir , Rs-10,000 – 12,500 value Mobiles Phones is loan available

    Reply
    • Basavaraj Tonagatti

      December 21, 2015 at 6:43 PM

      Udayakumar-There are always lenders ready of they find a suitable eligible candidate. So don’t bother about that. Instead, check why you need this mobile, whether it is need or want and your financial condition.

      Reply
  8. Prasanth

    December 11, 2015 at 11:25 AM

    Can i buy galaxy s6 through emi tell me the details

    Reply
    • Basavaraj Tonagatti

      December 11, 2015 at 5:35 PM

      Prasanth-Contact the lender.

      Reply
  9. kannan

    December 5, 2015 at 4:09 PM

    Sir I need to buy mobile in EMI without credit card? if its possible pls guide me

    Reply
    • Basavaraj Tonagatti

      December 5, 2015 at 8:05 PM

      Kannan-Yes, there many in cue to in search of customers like you. But think before going ahead of buying. Nothing is free or ZERO interest.

      Reply
  10. yunus shaikh

    November 8, 2015 at 8:11 PM

    i want buy samsung galaxy j7 in installm
    ent without cridet card

    Reply
    • Basavaraj Tonagatti

      November 9, 2015 at 9:10 AM

      Yunus-How can I help you??

      Reply
  11. Sam

    October 20, 2015 at 2:18 PM

    I Have Bajaj finance Card .. Shall i purchase the samsung Galaxy J7 Mobile ?

    Reply
    • Basavaraj Tonagatti

      October 20, 2015 at 4:29 PM

      Sam-Yes, but depending on how much limit they set for you and any outstanding loans you have with them.

      Reply
  12. Shwetha

    October 6, 2015 at 2:55 PM

    Sir I need to buy mobile in EMI without credit card? if its possible pls guide me

    Reply
    • Basavaraj Tonagatti

      October 6, 2015 at 6:39 PM

      Shwetha-It is possible if your income matches the lenders conditions. But do you feel it is worth to buy the mobile phone on EMI??

      Reply
  13. sangeetha

    September 28, 2015 at 7:04 PM

    how can i bu7y a mobile without credit card and what is the option for it

    Reply
    • Basavaraj Tonagatti

      September 29, 2015 at 10:46 AM

      Sangeetha-The simplest and best way is to ACCUMULATE the amount by saving monthly, then buy 🙂

      Reply
  14. S.Jeeva

    July 15, 2015 at 10:39 PM

    Hi,,I’m planning to buy a Microsoft lumia 540 ,it is Rs.10000..Can I buy this product thru bajaj EMI card ?

    Reply
    • Basavaraj Tonagatti

      July 16, 2015 at 12:20 PM

      Jeevan-First understand whether this NEED or WANT?

      Reply
  15. kiran shet

    June 17, 2015 at 12:35 PM

    Hi I want to buy mobile using Bajaj EMI card in Bangalore and where can I check for it

    Reply
    • Basavaraj Tonagatti

      June 17, 2015 at 1:07 PM

      Kiran-Check with Bajaj portal.

      Reply
  16. Avinash

    May 26, 2015 at 8:31 AM

    We talk or compare the Rates of Interest in various schemes, but what is applicable definition for that Rate of Interest ? Interest rates cane be (1) Flat Rate (2) Simple rate of interest (3) Daily,Monthly,Quarterly or Half-yearly compoundable (4) Reducing balance rate and Zero Rate of Interest as explained. Why these are not defined with ” short IDs ” so that investor is not confused, rather be-fooled with these figures ?

    Reply
    • Basavaraj Tonagatti

      May 26, 2015 at 1:28 PM

      Avinash-Well said the motive is to confuse customers so that they simply agree and buy the product 🙂

      Reply
  17. harish

    February 17, 2015 at 8:02 PM

    hi am planning to buy iphone 5s gold 16 gb and apple macpro laptop how much should i pay in first month can help me bro…… my contact no 8892853698

    Reply
    • Basavaraj Tonagatti

      February 17, 2015 at 8:53 PM

      Harish-I am not expert on the area you are asking 🙂 So sorry for not resolving your doubt.

      Reply
  18. Bharati

    October 17, 2014 at 1:51 PM

    HI Basavaraj,

    I brought a mobile online thru Credit Card EMI- 6 Months. Mobile price-6000/-. EMI Amt: 1035/-.
    Totally 212/- extra for 6 months. No other charges.
    I feel this is good deal to buy and with less interest.What you say about this…

    Reply
    • Basavaraj Tonagatti

      October 17, 2014 at 2:23 PM

      Bharati-Do you feel Rs.212 have no value? You visited the site link of calculator which I provided above? It shows the interest rate of around 14%. Do you feel getting loan at 14% is cheaper to you? Think twice to your investment also. It is hard to get 14% return for such short tenure but you are ready to make your Credit Card Bank richer at 14%. Strange na??

      Reply
  19. Sushila

    October 6, 2014 at 5:04 PM

    And consider the cash discount that the lender will pocket.

    Reply
    • Basavaraj Tonagatti

      October 6, 2014 at 7:05 PM

      Sushila-Yes point to be noted 🙂

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sidebar

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

Categories

  • Banking
  • Consumer Rights
  • EPF and PPF
  • Insurance Planning
  • Investment Planning
  • Mutual Fund
  • Real Estate
  • Real Life Stories
  • Retirement
  • Tax Planning
  • Uncategorized

Subscribe to our YouTube Channel

Recent Posts

  • Interesting Tax Dispute – Whether Sachin Tendulkar Actor or Cricketer?
  • List of Index Funds in India 2021
  • 7.15% Power Finance Corporation NCD Bonds 2021 – Review
  • ENEMY No.1 of your investment
  • 39 Year Multimillionaire’s Tesla stock value is Rs.83 CRORE – What we can learn?
  • Best Investment Plans for 2021 in India

Are you looking for Unbiased, Simple and Conflict-Free Financial Planning Service?

We neither SELL any product nor representative of any Insurance or Mutual Fund Companies.

We offer you an unbiased Fee-Only Financial Planning Service.

GET STARTED

    Follow along on social media

Get in touch with us here

Address: Basavaraj Tonagatti,
1446, Aastha, Sir M Vishweshwarayya Layout, 5th Block, Bangalore-560056.

Phone: (+91) 9019580450

Email: tonhokrani@gmail.com

Subscribe to our newsletter

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

© Copyright 2020

Return to top