Don't be get trapped in zero percent fianance scheme
We received a sample quote from TVS motors dealers for scooty pep + and they gave the plan as below:
The vehicle cost: Rs 47219/-
Down payment by cash:Rs 17219/-
The loan amount:Rs 30000/-
Rate of interest for this Rs 30000/-:NIL
No.of instalments:10 with each Rs 30000/-
But they charge a sum of Rs 3375/- as documentation charge.
They do not tell what for this documentation charges.
If you canculate the rate of interest for Rs 30000/- for 10 months, it will comes around Rs 13.5% per annum or 1.125% per month.
So there is no meaning of Zero percent interest as it seems to be in this scheme.
So do not get trapped by mind-fooling finance schemes when you purchase a vehicle. Go for bank finance schemes,there you will get diminishing interest with sometimes nil documentation charges.
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