This Device Is Locked Due To An Overdue Installment Payment Xiaomi Exclusive [repack]

To secure devices financed through Xiaomi-affiliated partners or third-party lenders by limiting device functionality if installment payments are overdue, while ensuring the device remains usable enough for the user to make a payment.

Xiaomi has issued a statement regarding this error (via Mi Community moderators): if the phone connects to Wi-Fi

A: No. The lock is triggered by server communication, not the SIM. Even without a SIM, if the phone connects to Wi-Fi, it will lock again. it will lock again.