Reasons Why Hidden Charges in Financial Transactions Should not be all that Hidden!


There is a popular saying in this world that “nothing worth having comes free in this world”. It is now has been realized by hundreds of customers of the NBFC (non-banking finance companies) which lure their tentative customers to buy their products on the pitch line of same day loans, no fees, zero transaction fee, same day loans without any processing fee and no such hidden charges. These loans pitched by the marketing experts of these firms are the reason for the attraction of a large number of people towards this sector. Some men and women believe that the zero percent fees or no banking charges are a reality. It is actually a part of an augmented reality which is created for the customers to feel the burden of any interest fee or charges as low as possible. It is time to enlighten the people who blindly believe that the zero percent schemes are not entirely zero percent and there are some hidden charges which might not be all that hidden.

What is it?

Till a few years back there was a large chunk of business being built up by the non-banking finance companies on the zero percent scheme. Instant payday loans, for instance, was a big boost to their business as more and more people, especially from the working class was attracted towards. These loans are same day loans and are free from any kind of legal documentation in comparison to the conventional loan distributed by the banks. People started issuing instant loans for bad credit, until and unless the chief regulating body on monetary supplies in the country regulated this financial scheme for the benefit of both the customers and the retailer.

How do these schemes work?

The zero percent schemes have an in-built hidden cost. Perhaps the biggest loss for a consumer is forfeiting a cash discount on a product that he/she could have otherwise availed, had he/she would have bought on full payment. In this way, the consumer ends up paying a transaction fee or processing fee under the zero percent scheme and consequently more money through advance EMI.

Are they genuine?

It is an inevitable fact that demands for such scheme are highly felt during the festive seasons in which the shopping trend is booming with all kinds of articles and paraphernalia. Schemes such as same day loans no fees tend to increase the marginal value of the customers. Market experts believe that there is marked a rise in the sales due to these schemes.  However, it takes some understanding of the basics to find the authenticity of these schemes.

How to decide if the schemes are actually zero percent?

It is always better to ask some basic questions to find out if the zero per cent schemes are actually zero per cent. Find out if you are eligible for any discount if you pay the full amount and if there are any transaction charges for the finance scheme and if the answer is no for both the questions then you might consider yourself lucky that the zero percent schemes are actually zero per cent.

Is my personal information safe?

The next big question of every individual after learning the legalities of the procedure is to look for the safety of the information supplied to it. Be it banks, online websites, credit card companies, third party insurance companies or other firms which are in the business of customer relation, maintains the security about the set of information supplied to it. The consumers presume himself and his supplier information safe because of the brand names they carry with it. The inkling which arises in the minds of the first customers is about the safety of the information because these firm are new in the market or have erupted in a short duration. This does not vouch for the authenticity of their process and functioning.

This doubt is completely understood by same day loan providing firms and they respect the privacy of the customer. Thus each and every type of information of entered by the customer on the website of the firm is 128 bit secure with SSL or secure socket layer encryption technology.

Are there any late fees?

As there is no such type of processing fees involved in the sanction of the loan, there are no such late fees. If you happen to pass over the due date for which you have to repay the lender then you have a right to ask for an extended period. The grant of extension for the first time is treated as the moratorium period and thus no excess interest rate of late fee is charged. If you pass over the second due date then also some of the firms may extend the time but this is dependent upon the administration and the amount of loan sanctioned. The second and third extension is dependent upon the discretionary powers of the firm. The first exception is valid to each of us.