Categories Finance

EMI Shopping 101: How to Make the Most of the EMI Option?

We all love going on a shopping spree, at least most of us do, and when it comes to big-ticket items, we start saving beforehand. Sometimes due to urgency or other financial liabilities, we need appropriate funds to pay for our desired items. To eliminate this unpleasant feeling of unmet needs, banking organizations, and fintech sectors have developed the EMI or no-cost EMI payment option even if you don’t own a credit or debit card and you don’t want to burden yourself with the approved loans online.

Most of us are aware of the method of buying high-priced items and getting them financed through banking firms following the legal proceeding of the emi loan application. There is an inclusion of extra interest charges levied in this conventional method of EMI provided by sellers and retailers. Still, the latest trend adopted in the financial market is the provision of interest-free EMIs. In this format, you only pay for the actual cost of the product in equated monthly installments without having a credit card which was mandatory for a regular EMI payment option.

Therefore it is an ecosystem that benefits all the parties involved; customers can purchase pricey items quickly now without having to bear the pressure of financial debt of instant small loans. Banks receive increased sources of income, and retailers can meet the goals of maximum sales in big-ticket items, which takes time. There are two separate ways in which the benefit of no-cost EMI can be availed:

  1. In-store financing: There are retail stores in various segments, such as electronics, healthcare, groceries, furniture, etc., that work in collaboration with fintech companies and banking institutions, and they provide direct in-house financing. You step into the outlet, purchase the item with minimal paperwork, spend a fraction of the price, and take the thing home. There is the option for both cardless EMIs and no-cost EMIs, which are more advantageous as there is not an iota of interest involved in the whole transaction.
  1. Digital wallets: If you own a mobile wallet, you can shop hassle-free without furnishing any card details. These wallets have an in-built digital network card that allows shopping on EMI without incorporating interest charges. The documentation process is eliminated in this mode of payment because the KYC details are submitted already, and one can make purchases with a tap. This payment method has gained momentum in recent years, more so after the onset of the pandemic, because people are shifting more toward contactless payment systems.

No-cost EMIs help customers manage their cash flow constraints effectively and simultaneously enjoy the perks of an upgraded lifestyle. However, one should always analyze the pros and cons of buying on EMI before investing in any high-priced commodity. It is of utmost importance that we are mindful of the way we manage our expenses without being lured by multiple quick loan options like insta loan and not go overboard with shopping for the sake of status symbols just because they are available with easy EMI options.

In conclusion, shopping with EMI options is a great way to purchase big-ticket items without breaking the bank. It allows consumers to spread the purchasing cost over time, making it more affordable and manageable. EMI options are widely available across various products, including electronics, home appliances, furniture, etc. These EMI payments are also easily managed by using any emi loan app.

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