Where the overpayment hides
- The instalment price is higher than the upfront price. Ask the store what the product costs if paid upfront, and compare that with the sum of all payments.
- Paid "services". Insurance, "processing" and SMS alerts are also part of the cost.
- Late-payment penalties. With instalments they can be higher than on a bank loan.
How to calculate the real rate
You need three numbers: the upfront price, the monthly payment and the term. The instalment calculator works out the real annual rate and compares it with a bank loan.
Example. A phone costs 8 mln upfront or 900 K a month for a year. That's 10.8 mln in total, an overpayment of 2.8 mln. The real rate is about 79% a year, while a loan at 24% would be 1.7 mln cheaper.
What else to remember
- Instalments are debt too: the payment counts toward your debt burden and your credit history.
- Several instalment plans at once quickly eat your budget. Check how much you can afford in AI Credit.
Sources: Central Bank of the Republic of Uzbekistan. This isn't financial or legal advice: confirm terms and rules with the bank and on official websites.