All You Need to Know about Pros and Cons of Buying Laptop on EMI
In the modern world, new laptop prices are everywhere. Everyone looks for laptop EMI, whether in college or retired. Customers who use PCs for daily work are slowly switching to laptop EMI because it is fast and easy to carry around. No matter what a person needs, a laptop is now the best way to get a computer.
Most laptop EMI is not inexpensive. Investing money is important, especially if you want the best-brand setup. Only a few people can get that much money for nothing. At this point, a laptop EMI could be helpful. Consumer durables, mostly home appliances like washing machines, air conditioners, laptops, and other tech, are often bought with loans these days.
Banks don’t give out traditional loans for these things as they do for car loans, home loans, etc. NBFCs (Non-Banking Financial Companies) are another source of loans for consumers. Most dealers work directly with NBFCs, so customers don’t have to deal with NFBCs directly when they buy.
Advantages of Buying a Laptop EMI
You can pay the sum in small monthly instalments rather than the whole amount. You can choose the option that best suits your needs from those that range from 8 to 36 months for payback.
No need to access your savings
You are not required to have the extra cash if you are taking out a laptop EMI loan or purchasing a laptop EMI. You may easily handle the EMIs within your monthly expenses without using your resources.
Numerous loans for consumer goods have rapid approval. You only need your ID and address proof if you purchase it from a dealer.
Zero percent interest
The interest is added on if you go to a bank or NBFC right away for a durable consumer loan. It can be anywhere from 12% to 15%, depending on the amount, your CIBIL score, and the lender. If your appliance dealer offers an EMI option for your purchase, you may be able to get it for free as part of a promotion. Credit card companies will often split your payment into EMIs as part of a promotion or when the interest rate is low.
Get the top deals
Most online stores sell items at lower prices and offer more services that add value. Also, many online shops offer payment plans with 0% APR if you use a certain credit card. You can use this service and get something out of it. You can also get free home delivery and other perks when you shop online. If the product has a brand name, there is no risk because all warranties and other guarantees are the same offline.
While the no-cost EMI is undoubtedly helpful and enables you to buy things you want but haven’t been able to due to financial limitations, it has several disadvantages. Let’s look at it.
- EMI payments are more expensive than upfront payments.
- You may be required to pay a set, non-refundable processing fee for the EMI.
- GST on the interest that is due must be paid.
- You will still incur interest costs if you return the item and receive a refund.
- You can buy expensive services you don’t need but desire.
Should You Go for No Cost EMI?
Yes, free EMI is a great way to buy something if you’re sure you need it and can pay the EMI each month for the length of the term. You should only pay what you should if you weren’t sure about the purchase and were just thinking about it at the last minute.
How Free EMI Operates?
E-commerce sites in India, like Flipkart and Amazon India, offer interest-free EMI plans with a typical interest rate of 15%. Most e-commerce businesses now offer a discount equal to the amount of interest. Let’s think about a buyer who wants to spend Rs 30,000 on a laptop and a smartphone.
If the customer chooses an EMI plan with no interest for three months and an interest rate of 15%, they will have to pay Rs 4,500 in interest. If the user wants to pay for the phone all at once, the price will now be Rs 25,500. They have to pay the whole amount, which is Rs 30,000, if they choose to pay in instalments. In this case, the interest payment goes to the bank, and the rest of the money goes to the store.
The amount of interest is added to the price of things that haven’t been marked down. As we’ve already said, the smartphone you buy for Rs 30,000 with a 3-month interest-free EMI plan will also cost you Rs 34,500 over three months. But since the RBI put out a circular in 2013 about EMIs with no fees, this method is no longer used. The circular says that banks can’t offer free EMIs because “the interest part is often hidden and passed on to the customer as a processing fee.”
You can pay off a loan over time by making equal monthly payments instead of one big payment (EMI). How much you pay back on a loan depends on several factors, such as the principal amount, the length of the loan, and the interest rate. Like any other financial system, buying a laptop in instalments has its pros and cons. You can visit the Piramal Finance website and explore their products and services.
Also Read: All You Need to Know about How Interest Rates for Home Loans Decided in India
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