Shopping On Zero Percent EMI

Shopping on monthly installments basis

Most of us who are net savvy can see number of adverts appearing anywhere we visit like on our email, Facebook, or all other networking sites. Probably companies all over the world have realized the fact that middleclass is interested to use costly products but cannot afford to pay one time for costly products like bikes, high end phones, air-conditioners, homes, big sized TVs etc.

The companies have figured out well planned strategies to hook these customers by giving them offers which make the products look at throwaway prices but if you calculate their actual value you will find the truth, the actual value comes to far more than its one time cost. Companies have started highlighting the EMI rather than products’ qualities or their features.

What you should look for

One should know the hidden costs while going for any deal on EMI basis, the fact is that most promises look lucrative on paper only but never prove true once you sign on the dotted lines. You should know the facts that you miss a lot of benefits which you can enjoy on one time payment and that too while you pay  extra in form of interest and processing fee and the discount that you could get by purchasing the product paying one time.

An example

You might have seen few adverts offering products on zero percent EMI, but that is not true. You get no benefit but it’s a way of marketing strategy of such companies, the sure way to hook a customer. Suppose you saw an advertisement offering a tablet for Rs 30,000 on zero percent finance scheme, you shall have to pay almost Rs.1500 as processing fee and no cash discount, which could save you another Rs 3,000. It turns out that you pay 5,000x6=30,000 +1500=31500 in six month an extra 4,500 for a product, which you could get for 27,000. That means you paid interest at the rate of 16.66 on every installment that makes it almost 33% annually.


What I feel that there is an impulsive shopper hidden in all of us that make us want to buy every thing that looks interesting, impressive or needful but we need to control our desires, which give such companies a chance to hook us. We should rather invest our income wisely to save enough to purchase on down payment to take full advantage on our shopping. 

Article Posted By : sunylView All Articles

Suny wants to look carefully before entering into a deal. 

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Keywords :
Monthly , installment , Value , Strategy , Interest , Annually , Save , Discount


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