I went to Vijay Sales to look at a laptop. The on‑spot price was ₹60,000, but they only gave a credit‑card discount if I chose the EMI option – no discount for cash payment.
The salesman kept pushing the EMI plan and even offered zero down payment, apparently not knowing I work in finance.
It feels like everyone is opting for EMI and stretching beyond their budget just because it's available.
Avoid.
What I usually do is let the seller set up the EMI, then I repay the whole amount in one go and close the plan. I still get the EMI discount but avoid the interest that's baked into the schedule.
Why avoid? Are you really a finance professional?
When the deal is a true no‑cost EMI, it's a no‑brainer. Usually you get extra credit‑card discounts on no‑cost EMI, and the GST and transaction fees are far less than the interest you'd pay on a regular instalment plan.
Just stick to the basics: don't stretch your budget because of EMI, and never agree to a higher price.
I bought a laptop not long ago. Needed it. The outright price was ₹90,000, but the EMI deal quoted ₹85,000 after accounting for interest, processing fees and GST. I could have paid the full amount, but if they let me spread it over six months without a real price hike, I don't see why I shouldn't.
If I keep the ₹90,000 in a high‑interest savings account for six months, I could earn an extra ₹1,500‑₹2,000.
Using debt to purchase goods or services has been around since money existed. Some people borrow for productive reasons, others for leisure. There's nothing wrong with it as long as you stay financially sound; otherwise defaults become the lender's problem.
I bought a new phone, ready to spend around ₹30,000. They gave a ₹3,000 card discount for a tiny ₹200 processing fee, so I took the ₹2,800 saving. If more people behaved like us and didn't rely on credit‑card EMI, the card companies would lose business.
Here's my take:
A business wants to squeeze as much money as possible from its customers. A customer wants to spend as little as possible.
From a buyer's perspective, if a shop offers big credit‑card discounts, why wouldn't I grab them? It's the obvious choice.
A savvy customer will use the credit card to his advantage.
A less‑savvy (and many middle‑class) buyer ends up buying not just the laptop but also a fridge, TV, sound bar, washing machine, oven, etc., all from the same store. He pays his hard‑earned money plus 18 % GST on each item just for a 5 % discount, and even drags friends into the deal during Diwali or year‑end sales.
He repeats this to show off, and by year‑end he has no idea where his money disappeared.
The system thrives on people borrowing from banks and spending money they don't actually have.
The real issue shows up when folks upgrade just because an EMI plan makes it seem easy. That's where many Indians miss the point.
People say leverage is risky.
In other news, water is wet.
EMIs are useful for necessities, not for wants.
If you need a ₹60,000 laptop, paying six instalments of ₹10,000 can be smarter than paying ₹60,000 outright, because you keep your emergency cash and can meet the monthly EMI comfortably.
Please don't call yourself a finance professional if you're not. Some EMIs do make sense, especially true no‑cost EMI where you save the interest you'd otherwise pay.