Unlike Apple’s iCloud Lock (which is server-based), Xiaomi uses a hybrid approach:
This issue is most common in markets where Xiaomi has partnered with financial institutions to offer device financing. In India, for example, Xiaomi launched the program, a digital loan plan designed to make smartphones more affordable. Similarly, Mi Credit offers personal financing services. In the Philippines, financing partners like Salmon, Payjoy, Billease, and HomeCredit are often mentioned in connection with this type of lock. Unlike Apple’s iCloud Lock (which is server-based), Xiaomi
A PIN, pattern, or password is a screen lock that protects a device that is already set up. A factory reset can remove this type of lock. On the other hand, "This device is locked" is an activation lock that operates at a deeper, system level. It locks the device before the operating system fully boots and can only be removed by logging into the correct Mi Account or by a customer service representative. In the Philippines, financing partners like Salmon, Payjoy,