I have taken a loan of Rs 50,000 each from two banks through credit cards. While one of the banks is charging only a service tax of 12.24 per cent, the other is charging the interest on the equated monthly instalment (EMI) apart from the service tax. Why this discrepancy? Which bank is following the correct procedure?Both banks will charge interest as well as service charges. Make sure you have understood the repayment process correctly. Since the EMI includes the interest component, there will be no interest on the EMI itself, unless you have not paid the EMI.
