Festive EMI Trap: Banks, retailers and e-commerce platforms during festivals show easy shopping through no-cost EMI and zero down payment offers. They also look attractive, but sometimes they increase the expenses significantly.
EMI Risk and Hidden Costs: The festive season is not just lighting, sweets and happiness, but also the biggest sale for companies. Banks, retailers and e-commerce platforms offer you attractive offers. These include zero-cost EMI, no down payment and instant approval. But have you ever thought that the debt trap behind these offers is also hidden? Let’s know the truth of no-cost EMI …
Why does no-cost EMI feel easy and why it becomes a threat?
Large amount in small parts
The price of a smartphone of ₹ 80,000 is high, but if it is divided into ₹ 6,600 monthly, it seems easy. The same trick also works on TV, fridge and holiday package.
Budget overstatch
Due to small parts, people start buying more expensive products. The phone of ₹ 20,000 changes to ₹ 35,000 as there is no problem in adding a little more amount according to the month.
EMI stacking
A phone, a washing machine, perhaps a sofa set. Every EMI seems small, but all together become heavy monthly expenses.
Loss of hidden charge and discount
Many no-cost EMI plans do not get the first discount or processing fees are added. So really you are spending more.
Problem in residency and emergency
Life is unpredictable. The job changes, medical emergency comes. EMI is certain, if missed, the penalty and credit score are affected.
Regarding and mental pressure
Many times the happiness of shopping ends, but EMI remembers every month. The happiness that got gradually turns into stress.
Why does EMI net grow?
Companies and banks adopt every trick to increase sales in the festival season. E-commerce platforms promote no-cost EMI directly than product discounts, so that users consider it easy and attractive. At the same time, social media and influencers motivate them to buy by showing new phones and gadgets ‘EMI’. Due to which, a credits were seen in October-n-November and a jump of 30–40% in Buy-NOW-PAY-Later tracking.
How to avoid EMI mesh?
- Ask questions- Do I really want this or the offer makes me feel like this?
- Check the budget and assess your monthly budget before EMI.
- Take care of your need. Do not increase big expenses just because of the offer.
- Keep emergency funds. EMI should not affect everyday needs.
- Do not pay attention to social pressure. Do not decide your need after seeing the shopping of others.
Also read- 5 inside secrets of personal loan, which everyone must know
Also read- Good News! Loan cheaper before Dussehra-Diwali, EMI may decrease