Well, you might be reading this article on your smartphone or laptop right now. Look around you, all the electronic gadgets you see are pretty expensive but readily available on EMI (Equated Monthly Instalment). In the current era of digitalisation, when you think about buying electronics on EMI, you don’t need to worry as it is as simple as ordering food these days. 

Everyone knows that buying a new laptop or a smartphone or, in fact, any kind of electronic appliance is a satisfying experience. But, there are times when you don’t have sufficient funds at a certain point in time to make such purchases. 

I experienced the same when last month I was planning to buy a smartphone for around Rs 84,000. Well, to be honest, I didn’t have this large amount to spend in one go but managed to get the same easily on EMI. 

What is EMI?

 

EMI (Equated Monthly Instalment) is a fixed monthly payment provided by a borrower to a creditor on a set day every month. It applies to both interest and principal each month, and the loan is paid off in total over a period of some years. 

The borrowers are only allowed to make a single payment every month, and they profit from it as they know exactly how much money they will have to pay towards their loan each month, which makes financial planning much easier. On the other hand, the lenders benefit from the loan interest, providing them with a constant income stream. 

How is Loan EMI calculated?

 

The total loan amount, tenure and the interest rate are a loan’s three key factors, and the EMI applicable to a loan varies according to all three parameters. However, I don’t want to get into those complex formulas to make you understand how Loan EMI is calculated as it can be checked easily via simple tools available on the internet. 

Here are some of the benefits that you get when you purchase electronics on EMI –

• Contents

  Toggle

  Freedom to buy.

When you plan to buy electronics on EMI, you have the freedom to buy even expensive items right away, even though you might not have the funds to pay for them at that very moment.  

• Increases your affordability.

Whether a top-notch laptop or the latest smartphone, EMIs can help you buy anything anytime. Here, your lender divides the total amount into monthly instalments, which you can pay in manageable chunks. 

• No middle man.

Unlike the old days and traditional methods, the EMI is directly paid to the lender, and there is no involvement of any middleman or mediator handling your payments.

Lighter on the wallet.

When you buy electronics on EMI, you already know the monthly payment, which is distributed over the entire loan tenure. So EMIs ensure that it doesn’t burn a hole in your pocket, therefore allowing you to make other investments also. 

As I mentioned above, I purchased a smartphone worth Rs 84,000 last month on EMI, I believe that it is a very convenient option. This is because only a little chunk from my monthly salary goes away and it doesn’t even pinches. Nowadays, no one wants to spend their entire savings on a single electronic item in one go and with the EMI option, you manage to keep your savings secure. 

When I was on the way to buy electronics on EMI, one of my close friends told me about the Bajaj Mall. So, I visited their application, and lucky me, I got the no-cost EMI option here for nine months. One of the best deals which I cracked!