4 Reasons why you should not Buy a Smartphone on EMI
If you are thinking of buying a new phone on EMI, then listen to me first. You must know whether Emi is good or not. After having an understanding of the EMI option, I will not suggest the EMI option.
Technical Dost definitely has reasons to say “NO” to EMI.
Consequences of Buying a Phone on EMI
Here are the consequences of buying a phone on EMI…
1. A high-interest rate
Buying a phone on EMI definitely gives you an easy payment option on a monthly basis. But in the EMI option, you are going to pay a large amount of 12–18% as the rate of interest. It means that for a 10,000 rupee phone, you will have to pay an additional amount of 3,000 to 4,000. Not a wise decision.
2. Increased Reselling Depreciation
Usually, companies keep launching new models every six months. Suppose you have a phone on EMI, and feel like changing it. First, you have to sell your phone at a loss of 3,000 to 4,000 rupees. Secondly, you need to close your balance EMI before tenure. Closing EMI before tenure also costs you between 2% to 3% extra. It’s a big loss of around 5,000 to 6,000 in total.
3. Penalty on Pre-payment
Even if you have the cash to pay. If you repay the loan before the tenure of the loan ends, most EMI schemes will charge you a prepayment penalty of between 2% to 3% of the actual amount. This doesn’t make any sense. If you’re even paying before the tenure, you’ll have to pay an extra amount.
4. Pre-installed Apps Can be Dangerous to Privacy.
Don’t Buy a Smartphone on EMI. On the EMI phone, many companies activate pre-installed apps. These apps work to remind you to pay on time. Companies also let customers know about this. But there is a chance of your privacy being leaked through these apps. So be careful.
What should we do?
Don’t buy a phone on EMI until it is absolutely necessary for you. Don’t choose such an option to show off by paying an extra amount. Try to control your needs and spend according to them.
Don’t go for luxury. First, settle your needs. Maybe some people would say that they don’t have sufficient funds to buy a new phone. But I would rather suggest, first of all, saving money. Then buy your dream phone.
We must choose the EMI option wisely based on our level of urgency.