There is a smart move when handling the cost of the new phone that involves paying through EMI. This makes it become more affordable by splitting payments into smaller portions. However, before implementing an EMI plan, consider several important factors to ensure it is the right choice. First, thoroughly compare different lenders and their terms, including interest rates and fees. Third, read the fine print of the loan agreement to understand all conditions and potential hidden costs. Finally, consider purchasing insurance to protect against theft or damage.
What is Electromagnetic interference?
EMI (Equated Monthly Installments) are repayment amounts given at certain dates every month for borrowers until full payment of interests and principals clears off the debt within a particular period of time. Typically, EMI is usually applied for various types of loans such as personal loans, home loans car loans or consumer durable loans like ACs and mobile phones.
Is buying EMI phones good or bad?
When considering buying a mobile phone through EMI, it is crucial to understand the interest rates, hidden charges and the total cost of the phone when paying through EMI. Understanding the terms and conditions is crucial. Considering these factors will allow you to make a more informed decision and avoid any financial pitfalls.
5 Mistakes to Avoid When Buying EMI Mobile Phones in India
Don’t shop around for best deal
Many companies offer mobile phone financing on EMI such as lenders and retailers in India. Before opting for one loan over other, compare interest rates charged by them, fees involved in various options etc.. Shopping around can save you hundreds if not thousands over course life your loan.
Don’t look at your budget
Having capacity to pay for an EMI phone does not necessarily mean it’s wise decision made after carefully evaluating all alternative options available at that time. One should take into account entire cost of credit including rate of interest that will be chargeable along with borrowing fee while preparing budget for a new mobile set. Make sure that your EMI’s fit in well with your monthly budget so as to avoid any financial stress.
Don’t read the fine print
Before signing any loan agreement, always go through the terms and conditions carefully written in small letters. Know about various heads of charges such as interest rates, fees etc. Please pay special attention to the terms and conditions, including the duration of the EMI plan, the flexibility to pay upfront without penalty, and any conditions that may apply in the event of missed payments.
Extend loan term to reduce monthly payment
While it may be tempting to extend the term of your loan to get a lower monthly payment, it also means you’ll end up paying more in interest. Before choosing a longer repayment term, carefully consider the total cost of the loan over its entire term.
Not getting insurance
If your phone is damage or stolen while you’re financing, you’ll still have to repay for it by all means. In order not to incur these unforeseen expenses like taking some money from home budget one should think about obtaining phone insurance coverage. Insurance can provide peace of mind and financial support when these tragic events take place.
