Many times we are unable to lay our hands on electronics that we were ardently longing for due to their enormous price. Be it a smart television, laptop or the latest smartphone in the market, the prices have no doubt touched the sky, making it literally impossible to purchase them with ‘all-in’. But such a concern no longer exists as one can easily buy electronics on EMI now.
Remember, there is no need to dip into your emergency funds to pay for the purchase. Many leading institutions offer easy EMIs with a single tap on your phone. Recently, I was also stuck in the same situation when I had to buy a laptop for my new job. Well, if you use one, you might know how expensive these things are.
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What is an EMI?
EMI (Equated Monthly Installment) is a fixed monthly payment a borrower provides 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 more efficient. On the other side, the lenders benefit from the loan interest, providing them with a constant income flow.
What are the five things to note while purchasing electronics on EMI?
To buy electronics on EMI, there are certain things one needs to keep in mind. However, from choosing the right EMI option to paying your dues on time, a few factors play a significant role.
● Choose the right EMI option.
When you are looking to buy any electronic appliance online on EMI, you have to be mindful. Let not the lure of paying less every month fool you into paying much more than the product’s actual price. Therefore, it is advisable to choose a moderate tenure of EMI where you can pay the monthly dues without much sweat while keeping the rate of interest under control.
● Sufficient Balance
Ensure that you always have a sufficient balance amount in your account that is linked to the mode of payment you’ve chosen for your EMI purchase. This is significant because your EMIs are auto-debited from that account on a particular chosen date. You don’t want to falter on a payment or risk paying an extra amount as a penalty charge, do you?
● Buy from reliable sources.
Don’t just go on the internet and make a purchase. You might end up getting a bad deal. Not promoting or anything. I have been using the Bajaj Finserv application for almost a year, and I purchased my laptop from the Bajaj Mall with an easy EMI option. So, my point here is that it is essential to choose a trusted source so that your entire transaction is safe and sound.
● Flexible Repayment Tenures
Generally, if you buy electronics on EMI, the repayment tenure ranges from 3 months to 36 months (3 years). Ensure that you choose a duration that is convenient for you. The longer the tenure, the lower the monthly EMI. Undoubtedly, small EMIs are easy to pay from your monthly budget without having to make big compromises on your current lifestyle expenses.
● Go for a network card.
Instead of going for a credit card that usually charges you a fee or interest to use the EMI facility, go for an EMI network card. I don’t know about other financial institutions, but when I purchased my laptop from the Bajaj Mall, the company only offered me this card. So if you buy electronics on EMI using this card, you need not worry about paying anything additional. You can also count on this card to make secure payments, as every transaction requires your authorisation in the form of an OTP (One-Time Password). Many electronics, such as laptops and smartphones, have become necessary in today’s era. So, if you are smart enough not to shell out a large sum of money upfront, buy electronics on EMI. But, then, keep the points mentioned above in mind, and you are good to go.
