PC: tv9marathi
Nowadays, if you want to buy an expensive smartphone and your budget is low, then instead of paying the entire amount at once, you can buy it through monthly installments i.e. EMI. Now most e-commerce sites and retail stores offer phones with monthly EMI options. You can easily buy smartphones and other electronic gadgets on EMI. With this platform, you can get phones and other electronic goods on EMI ranging from 3 to 36 months from various banks. These offers can be availed through other methods including debit and credit cards. However, most banks offer EMIs at an annual interest rate of 12 to 18 percent.
PC: Times Bull
What is EMI?
EMI system has to be understood like this. You are buying an iPhone 12 on the e-commerce site Flipkart. You can buy its 64GB storage variant on Flipkart for Rs 38,999. If you choose a 3-month EMI plan at 13 percent, you will have to pay Rs 13,283 per month.
In this way, you will have to pay Rs 39,849 for this iPhone. That means to buy this phone you will have to pay Rs 850 more. So, if you choose a 36-month EMI plan at 15 percent, you will have to spend Rs 1352 per month. You will have to spend a total of Rs 48,672 for this phone. This means you have spent Rs 9,673 more for a phone worth Rs 38,999.
PC: Hindustan
Now the question arises whether you should buy the phone on EMI or not. Buying any product on EMI has both advantages and disadvantages. Many times during sales, users get the option of no-cost EMI, which is a good option. At the same time, the smartphone is a product that is a good option to buy at low-interest rates, because the valuation of the phone will reduce with time, so buying it at high interest rates is not a good option. Additionally, defaulting on repayments can also have a major impact on your credit score. It is right to choose a phone according to your budget.
