Holding back on your electronics purchases due to lack of funds? In this day and age, you don’t have to. You can get any kind of electronic device or a smartphone like the iPhone 13 on EMI with just a few simple steps. But then, before you go ahead and get your favourite mobile on EMI, there are certain things that you should keep in mind. Let’s take a look at what they are.
- The rate of interest
Banks and financial institutions generally charge interest for availing the EMI option. Usually, the rate of interest on EMI is around 14% per annum to 16% per annum. This is likely to change depending on the tenure that you opt for. For instance, the lower the tenure, the lower the interest rates are likely to be. So, the interest rate is something you should consider when purchasing a product on EMI.
- Availability of the product on No Cost EMI
Depending on the website that you’re purchasing the product from, you may be eligible for the No Cost EMI option. This option allows you to purchase products on EMI without having to pay any interest. So, for instance, if a smartphone costs Rs. 24,000, and you choose to avail the No Cost EMI option for 6 months, you will only have to pay Rs. 4,000 each month.
- Additional charges
Some banks and financial institutions tend to levy additional charges like processing fees when you opt to purchase products on EMI. Therefore, this is another major factor that you would need to consider when buying products like the iPhone 13 on EMI.
- Your credit limit
Every credit card has a particular limit up to which you can borrow. Your credit limit determines the kind of products that you can purchase on EMI. Knowing what the credit limit for your card is can help you plan your purchases in a better manner.
- Your capacity to repay
And finally, the last factor you should consider when purchasing electronics on EMI is your repaying capacity. It is important to determine whether you will be in a position to successfully repay all the EMIs. Failing to pay even a single EMI can lead to all sorts of trouble and can damage your credit score and history.
If you plan your finances right, it is possible to get the best electronics and mobiles on EMI without straining your wallet.