FREE LUNCH

There is no such thing as a FREE LUNCH.

A Salesman from a NBFC speaks to a prospective customer and says he could

avail an interest free loan of Rs.1,00,000. Interest free for the first 50 days.

The customer says no one can give an interest free loan and keeps asking

about the hidden charges.

After much pushing the salesman says that there is a joining fee of Rs.499

and processing charges equivalent to 2.5% of the loan amount.

The customer points out that it works out to about 18% p.a. for the 50 days period.

The customer asks about the interest rate after 50 days to which pat comes the reply:

3.99%.  And that is per month!!

So you see that there is no such thing as a free lunch!

One needs to be wary.

Bhargav

25.10.2023