Important FAQs
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SMART EMI is a combination of ICICI Bank auto loan with services and special features from TranzLease which covers everything for your car to create for you a single window solution platform – car financing, insurance and its management, total maintenance of the car and disposal of the car at end of tenure along with various other interesting value added features … Everything is included.

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SMART EMI works on the premise of being smartest and not cheapest. At the same time, financial partner backing the program i.e. ICICI do offer some of the best interest rates in the market on which the product is built upon.

SMART EMI is about cost control on an overall basis. On such basis the effective ultimate cost of ownership and usage of your car is lower under SMART EMI program. On a cash flow basis it is a financially smarter choice.

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Referral cash back is a special benefit available to you when you become a SMART EMI customer – SMART EMI is targeted to an exclusive audience who will have associates and friends who definitely are car buyers – so for a SMART EMI customer it is very easy to use our online portals and refer their friends looking to buy a car – every successful referral will earn you Rs. 16,667/-a as bonus. Obviously this is a tool to reduce your overall ownership cost – such feature is not available under normal auto loan and hence for comparison, the referral cash back is considered as a financial benefit that reduces your cost.

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Under SMART EMI, if your EMI is lower than that of an auto loan for the same car or your down payment amount is lower or both, then obviously you are saving cash under the SMART EMI program vis-à-vis normal auto loan. Considering financial prudence, any cash saved earns income – for illustrative purposes we have taken an SIP return of only 12% (one can earn more if deployed in business or if deployed in stock market) and accordingly such benefit reduces the cost of SMART EMI. Alternatively, even if you do not invest in SIP consider the substantial value of cash savings vis-à-vis a normal auto loan which can supplement other necessary expenditures for yourself.

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We have intentionally not included the 7 year program as it only appears beneficial with a lower EMI but ultimately proves more expensive due to following reasons –

  • (a) You are stuck with same car for 7 years – in today’s world with new models being introduced every year, unless you have financial problems you will not want to continue to use an old car model for 7 years.
  • (b) From 5th year onwards the maintenance expenses skyrocket
  • (c) Resale value drops heavily after 5th year
  • (d) If you want to change the car in-between then due to very long loan tenure your outstanding loan amount will be much higher than resale value and as such you will not be able to close your loan/change your car or incur heavy loss if you do so.
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You should take SMART EMI if you are looking for a hassle free risk protected cost effective car program.

Insurance, maintenance and disposal of your car already factored into SMART EMI is better through us compared to what you can do on your own – our expertise, experience and economies of scale assures the same. Main advantages through SMART EMI are:

  • a) Better and more comprehensive coverage
  • b) No more multiple source scouting and negotiation at every stage for every transaction
  • c) Full tenor insurance and maintenance available under easy EMI structure with 0% rate of interest i.e. no interest is charged on insurance and maintenance EMI.
  • d) No cost escalations
  • e) Protection from resale value risk
  • f) Profit on resale (i.e. resale amount greater than expected) belongs to you whilst loss (i.e. when resale amount is less than expected) is borne by us. If you are looking for lifestyle and ease of car usage, SMART EMI offers the best option in the market together with flexibility.


Insurance FAQs
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Insurance under your SMART EMI is comprehensive with coverages including zero depreciation, consumables, engine guard/secure, hydrostatic lock, road side assistance (all details shall be available in the policy document) and comes with a variety of services like claim management, proper IDV coverage and various other factors, which cannot be ensured in case of online insurance procurement. Also, under the SMART EMI, the insurance is being paid through monthly instalments and hence not a lump-sum annual cost burden. Moreover, under the SMART EMI program you just need to get in touch with us for all insurance related matters and we do everything on your behalf. Under online insurance, you most often do not get adequate coverage or claim management services.

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SMART EMI provides comprehensive insurance cover + Zero Depreciation (up to 2 cases per year), consumables, engine guard/secure, hydrostatic lock and road side assistance (all details available in policy documents). Unlimited Zero Depreciation cover is also available at an extra cost (can be included at time of order finalization). However, during renewals insurers may decline to provide you with zero Dep and/or consumables cover based on accident history of your car / changes in IRDAI rules. In such case, we will rework your EMI to include normal comprehensive insurance which may result in revision of EMI. This may happen at time of renewals only. Also, in case of claim partially/totally being rejected by insurance company the difference between actual repair cost and insurance settlement amount is to be borne by yourself – note that this is generally applicable in all cases, however, with TZL the claim settlement ratio is usually higher than normal thus reducing your cost.

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SMART EMI includes your estimated insurance cost for entire tenor of the SMART EMI.

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Under SMART EMI all insurance claims, renewals etc are handled by TZL on your behalf.

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In case of no claim bonus available to you, the same will be given to you at time of renewals through cash back. Amount will be transferred to your bank account after applicable TDS (if any).

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You do not need to pay anything extra as SMART EMI insurance covers full tenor coverage; however, difference between claim amount settled by insurance company and actual expenses are to be borne by you including claim processing charges per case of claim (charged by insurer and not us). Also, if there is any increase in TARIFF rate under government rules, then such additional tariff, if any will be recovered from you at actuals. Note that under SMART EMI program we will act on your behalf to ensure that in case of claims, you receive the appropriate amount and your own exposure is either NIL or minimal (depending on circumstances of each case).

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GST already included in EMI – you do not have to pay anything extra; also note that input credit of GST is already factored in whist calculating EMI so that you pay GST only once and there is no double impact on you.



Maintenance FAQs
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One of the biggest myths of car buying is that during initial years the car is maintenance free. The reality is that on most models, only 1st service and some portion of 2nd/3rd services are free – everything else has to be paid for. The maintenance included under SMART EMI is based on manufacturer/dealer specified maintenance schedules and factors in both free and paid services. Moreover, SMART EMI maintenance is a TMC i.e. Total Maintenance Contract along with warranty management that includes both periodic (or scheduled) maintenance as well as running repairs. Moreover, SMART EMI maintenance cover ensures that all the maintenance work required for your car is done in proper manner and at proper intervals to ensure car quality and this also helps in maintaining a good resale value at the end of the tenure. Consumers are often mistaken that car maintenance during initial years is free but in reality every car consumer has to bear minimum expenses and more often than not, pay also for unforeseen and unbudgeted expenses – with SMART EMI maintenance this risk factor is almost nil along with convenience and peace of mind for the consumer and this finally ensures a higher resale value the benefit of which is that your BONUS at the end of the tenor increases

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TZL provides you with TMC (Total Maintenance Contract) as opposed to dealer AMC (Annual Maintenance Contract). Certain manufacturers also provide maintenance packages but TZL-TMC is more exhaustive. Also, AMC from dealers typically have various restrictions and conditions which is not there in case of TZL maintenance program. Also, TZL maintenance is automatically included in SMART EMI without any interest cost loading i.e. you are paying only on a monthly basis but without any interest

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No car is zero maintenance – this is a fact and consumers suffer endlessly in terms of quality and in terms of sudden unforeseen expenses during their visit to the workshop. The general consumer is unaware of technicalities and ends up spending more at the workshops. Under the SMART EMI this risk is eliminated – known as “Maintenance Expense Loss Protection Service”. Plus, you are not required to incur sudden lump-sum expenses as maintenance is already included as a per month amount in your car EMI

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TZL maintains highest standards whilst undertaking maintenance of the car – TZL has national level tie ups with car manufacturers and authorized dealers and all maintenance work done through such channels; in case of denting and painting smaller but authorized workshops will be used guaranteeing no loss on warranty.

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Maintenance under the SMART EMI is more comprehensive than any dealer AMC (annual maintenance contract) program or OEM packages for maintenance. It covers periodic or scheduled maintenance services, running repairs, accident repair management (as covered under the insurance policy) and all associated charges for spares, parts, labour, lubes and consumables.

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Repairs/damages resulting from unauthorized usage, drunk driving, violation of any laws (including traffic laws, Motor Vehicle Act etc), rejected insurance claims, damages due to rodents and negligence are not covered under the maintenance program. Tires and batteries are excluded but these can be procured at special discounted rates through us (your choice) as and when required. For further details please email your specific query at smartemi@tranzlease.com. Minor dents and scratches which do not require any body work are excluded.

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Periodic maintenance service is the periodic service scheduled for a particular model of a car as per manufacturer specification and takes place at certain intervals of either KM travelled or time elapsed

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All maintenance not included in PMS (see above) is covered under this.

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ARM refers to the entire process of processing the insurance claim, getting the car repaired under insurance and putting the car back to your usage. All expenses other than expense amount rejected under claim is covered.

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SMART EMI program covers all expenses for up to 15,000 KM travelling every year (on a cumulative basis) (for 36 month contracts the coverage is up to 50,000 KM). There is no travel restriction i.e. you can travel more than allocated KM and expenses beyond stipulated KM will be charged to you at actuals.

Tip: If your KM running is expected to be higher by more than 10% then please do intimate us in advance so that we can revise your EMI. Also, if KM running is expected to be majorly different from 15,000 KM per year then let us known in advance of car booking so that your EMI can be customized.

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GST already included in EMI – you do not have to pay anything extra; also note that input credit of GST is already factored in whist calculating EMI so that you pay GST only once and there is no double impact on you

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Residual or resale value loss is the most significant risk in today’s environment. With new car models being launched along with obsolescence of earlier models, the value that you will fetch by selling the car is uncertain – when you buy the car through an auto loan the entire risk is on you whereas under the SMART EMI you are completely protected – if the value of your car drops substantially you do not incur any financial loss as you can simply return the car at end of the SMART EMI; if value of the car is more than expected then either (a) you can buy the car at such lower market value and sell higher to make a profit or (b) allows us to sell on your behalf and get the profits as bonus - So you benefit in every way.



FAQs related to BONUS amounts
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Yes – you can buy the car and sell it on your own. Profit or loss as the case may be is on you in such case; if you surrender the car then you will be protected from any loss and in case of profit, such profit entirely goes back to you as BONUS

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TZL is expecting a minimum resale price when you surrender car (at end of the tenure) and accordingly guarantees the bonus amount. The BONUS amount is given by TZL (not ICICI Bank ). However, if the accident history during your car usage is unsatisfactory or KM coverage is more than 10% of stipulated usage then bonus amount can reduce.

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Good drive bonus is a special incentive given to you to reward you in case of good driving habits and or better than expected market conditions at the end of the tenor. Good drive bonus is available when you exercise the Surrender Option at the end of the tenor. At the end of the tenor, when you surrender the car, any sale value over and above the value stipulated under your chosen scheme will be given back to you as good drive bonus. You can yourself introduce buyers to maximise your BONUS amount.

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To be paid directly to your bank account

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Follow the simple steps below to start earning referral cash backs.

Step 1 – Refer a friend online through your TZL online account
Step 2 – On successful referral i.e. delivery of car made under SMART EMI to the referred person, you are eligible for your bonus (you can track your points on your TZL online account)
Step 3 – Amount paid directly do your bank account after applicable TDS.

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TZL is responsible for helping you choose the car, procure, insurance, maintain and dispose of the car; ICICI Bank role is credit appraisal and financing of the car. TZL also acts as a guarantor of the vehicle and provides complete protection from resale value price fluctuations and risk from unbudgeted/unforeseen expenses.

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Car is registered in your name. At end of tenure, you can surrender car to TZL – on such surrender you will get BONUS as per the Plan chosen. TZL will complete formalities for name change in the RC book and provide you with NOC from bank – you just have to follow the instructions from TZL including providing documentation as required.

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Yes. You can always refer your preferred dealership to us – however, in such cases, we may not be able to negotiate the best price for your car or ensure timely delivery and such will be your responsibility.

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Yes – we will offer you the latest models available at the authorized dealerships. If you choose to buy an older model you need to let us know in advance. Similarly, in case of any specific requirement like delivery date, special registration number or accessories you need to let us know in advance (at time of confirming your order)

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You can manage your SMART EMI just like you manage your bank accounts – TranzLease has unique personalized online car portals through which you can manage your SMART EMI and more – some features of the online portal are:

  • (a) Book your car
  • (b) Compare EMI of various cars
  • (c) Online cloud repository of all your car documents
  • (d) E-tickets
  • (e) Referral program benefits
  • (f) Billing information
  • (g) Support tools like insurance claim forms, accident report forms, car problem report forms etc.

The portal has been designed keeping in mind your convenience and to enable you to manage your car life cycle with minimum effort.

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If you want to close the SMART EMI before end of the tenure, you have 2 options:

  • (a) Option 1 – Buy car : Own the car by payment of outstanding loan value (loan value chart as per ICICI Bank will be available with you on delivery of your car) + prepaid insurance (if any) + arrear dues (if any)
  • (b) Option 2 – Surrender car Surrender car to TZL and difference between market value of car and outstanding loan value (as per ICICI Bank outstanding loan value chart) needs to be paid by you and you can close the SMART EMI. Prepaid insurance (if any) and Arrear dues (if any) shall be recovered as well.

Note that guaranteed bonus and good drive bonus not applicable in case of premature closure i.e. closure before end of the tenure

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The Rate of interest is the same as under ICICI auto loans - it slightly differs based on the car chosen and your credit score.