Today gadgets are an essential part of our life. We all strive to stay updated with the latest technology and gadgets. However, most of the time, these new devices are expensive. Thus, buying them could disrupt your monthly budget. Then, how to buy them? A simple three-word answer for this question is – Equated Monthly Installments or EMI.
Buying gadgets on EMI is a simple solution since saving the money necessary could take time. The second choice is to use your emergency money and then purchase it, which is never a good idea. Hence, EMIs are your best and straightforward way out.
Here is more on why you should buy gadgets on EMI:
Protects Your Savings/Emergency Fund
In continuation of the above point, EMI hinders you from taking a considerable amount out of your savings or emergency fund. You can pay the monthly instalment from your salary, which would be less and can get easily accommodated in your monthly budget.
It Allows You to Get Best Seasonal Offers
Festivals abound in India, and banks make use of them to attract new customers. Banks may use telematics to determine how and when to attract consumers. As a result, they introduce numerous EMI schemes during festivals. Thus, if you are preparing to buy a device, make sure you are aware of all the deals, discounts and offers available from service providers.
Repay in Easy Installments
Besides saving your emergency money, EMI allows you to return the entire amount over a shorter period of time. Most service providers provide a payback period of 3 to 36 months (three years). The lower the tenor, the lower the EMIs (Equated Monthly Instalment). Keep in mind, however, that if the repayment period is extended, the borrower will have to pay extra interest. So, pick a mid-way out, and choose a 9- or 12-month EMI. It will cut your EMI and reduce the amount of interest you pay.
No Down Payment Required
The fact that these plans do not require a down payment is the most important aspect that has contributed to their success. As a result, when you buy a gadget on EMI, you will not have to pay anything out of your pocket, and the device will be yours. You can pay them back over time in Equated Monthly Installments, or EMIs. You also have an option of “No-cost EMIs” these days. As a result, you will not be required to pay any further interest. The amount you return will be the same as the cost of the device.
Faster Approvals for Paying in EMIs
EMIs are the talk of the town these days, therefore most times your requests to buy items on EMI will be accepted without a hitch. As previously said, banks want more clients to take out EMIs, therefore they provide the most up-to-date deals on a regular basis. Hence, banks do not want their clients to have to wait for extended periods of time for approval. As a result, your loan is authorised in minutes and requires fewer papers.
Buying gadgets on a monthly payment or EMI provides benefits, but you should weigh all of your options before deciding. Some providers charge you a higher interest rate than others. While some may have shorter payback terms, others may provide fewer savings. As a result, it is like the two sides of a coin: on one hand, you receive attractive deals and discounts with simple repayment terms, but on the other hand, you have to pay interest, which raises your EMIs. As a result, it is best to familiarise yourself with all the terms and conditions before taking it out on EMI.