We often find ourselves wanting to buy a new phone or a laptop. It might be perhaps there is a better, updated version in the market which is likely to suit us more. Or maybe we are buying it for the first time.
Whatever it may be, spending on an unprecedented expense such as buying a phone or a laptop can dip into your savings. If the product is expensive, you can find yourself crippled for the next couple of months, still reeling from the hole in your savings account.
If that is the case, you should consider making the purchase on EMI. Here’s what to look out for when buying a phone on EMI or a laptop on EMI.
If the phone or laptop that you are planning to buy isn’t that expensive and if you are confident about not having to scrape much of your savings, EMI needn’t be an option. But if you are eyeing an expensive one, opt to purchase that laptop or phone on EMI. If you are a fixed salaried employee, chances are that you like to keep your expenses consistent. In that case, too, choose EMI.
When you decide to make the purchase on EMI, you can always decide to go for a more expensive product. Since the liability remains consistent and stretched over a long period, there will be minimal damage.
With EMI, even if your dreams come at a huge cost, you will still be able to afford it. But while you decide to buy a laptop or a phone on EMI, you might actually end up paying more than the actual amount of the laptop or the phone. Along with the principal amount, you will find yourself paying extra cash in the form of interest.
Why should you take this route when there are no-cost emis available? With no-cost emis, you don’t have to worry about paying more than the price of the product. But sometimes, even this comes with a catch. The company may levy extra cash from you in the form of an application fee or processing fee. To not fall into any of those traps, you can avail of the EMI services that offer zero percent interest rate, no processing fee, no application fee, and no pre-closure fee.
The down payment is the amount that has to be paid upfront when you make a purchase. This amount can still take a dig at your savings. Choose services that ask for no down payment on the purchase.
Variety of plans
EMI services offer a variety of plans. You can find plans spread over a period of 3 to 12 months! That way, you can afford a more expensive phone or laptop on EMI. Since your monthly liability is small and affordable, and since your savings hasn’t been used up, you can earn more interest on the money still in your savings account, which otherwise would have been used up.
No debit or credit cards
You don’t need to use your debit card or your credit card to avail of the EMI service to get a laptop on EMI. The no-cost emis that the bank offers are to people who hold a credit card or a debit card. But the new financial technology platforms do not require you to be a holder of a credit card or a debit card.
A variety of brands to pick from
These days, more and more brands are signing up to offer the services of EMI. You can choose your phone or your laptop on EMI from a long list of reputed and popular brands such as Amazon, Flipkart, MI, Paytm, etc.
Signing up for EMI services is not a tedious process. It is a convenient and easy-to-navigate process where first you have to acquire your credit limit and get it approved before making the purchase.