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EMI, Smartphone buying tips and tricks, India, credit history

Smartphones are purchased on EMI worldwide including India. There is nothing new in this, as the price of the flagship smartphone is increasing with each passing day. Smartphone maker companies along with banks are offering the option of buying smartphones on EMI. But buying a smartphone on EMI can cause problems for the user. This is because, in cities like India, the customers of metro cities and small cities have a credit history, so that EMI installations can be obtained with a credit card. But the rest of the customer does not have a credit history. For such people, buying a smartphone on the EMI option can cause a lot of trouble.

According to the Rest of the World report, banks use a variety of tactics to recover phone installations from people without a credit history. Banks install an app for the installation of the phone to track the phone purchased on EMI. This app tracks the location of the customer and locks the phone if EMI is not installed. 

Installing the app is necessary to recover the loan 

According to the report, companies providing smartphones on EMI provide loans based on the financial condition of people without a credit history. It is mandatory for such a customer to install an app on their phone. The user cannot uninstall it. This app accesses the user’s data. This includes text messages, photos and location. This continues till the state of paying the loan in full. Audiovisual notification is sent by the customer on the delay of installation, which is in the local language. Also, the wallpaper is forcibly changed. Apart from this, the camera and social media platforms are blocked on the phone until the payment is completed.

Government showed strictness  

The government has been tough on banks and companies providing digital loans and has brought under scrutiny the way of forcibly recovering loans. Also, more than 100 instant loan applications have been discontinued by Google. These companies are also accused of charging higher interest.