How Can I Buy a New Phone on Easy EMI

Dreaming of that new smartphone, but the hefty price tag has you hitting pause? Wait no more! This blog offers expert insights into how to buy a new phone on easy EMI. Get your dream device today, transforming a big expense into small, manageable payments. Let’s make that upgrade simple and stress-free!

What is an EMI? 

EMI stands for Equated Monthly Instalment. It allows you to purchase a product by paying for it in small monthly amounts over a fixed period, instead of paying the entire cost at once. The total amount may include interest, depending on the EMI plan and the financial institution offering it.
 
Let’s understand with an example: If you’re buying a phone that costs ₹30,000, and you choose a 6-month EMI plan, you could pay ₹5,000 every month (excluding any interest or fees) until the full amount is covered.

Why Choose an Easy EMI

Let’s understand why an easy EMI is the best choice for you to purchase a new phone on EMI:
 
•    Affordability: Spread out the cost without hurting your savings.

•    Flexibility: Choose a plan that suits your income and cash flow.

•    Instant Approval: Quick and easy processing, often within minutes.

•    Better Buying Power: Enables you to buy a better phone than your current liquid budget might allow.

How to Purchase a New Phone on Easy EMI

Purchasing a new phone on EMI is a great way to manage your finances while getting the latest device. Here’s a step-by-step guide:

1. Check Your Eligibility
Before you start shopping, it’s wise to make sure you are eligible for an EMI plan. Here’s what’s typically required:
•    Valid ID proof and address proof
•    A steady source of income

2. Understand the Types of EMI Options
There are usually two main ways to buy a new phone on EMI:

a. Credit Card EMI
Most financial institutions offer EMI options on credit card purchases, which is further divided into the following:  
•    No-cost EMI: You only pay the original price of the phone, split across several months, with no extra charges.

•    Standard EMI with interest: The financial institution charges interest over the EMI period, increasing the total cost slightly.

To avail of this type of EMI option, simply select the EMI option during checkout and choose your preferred financial institution and EMI duration.
 
b. Consumer Durable Loan
Many financial institutions like Poonawalla Fincorp offer Consumer Durable Loan for gadgets and electronics. These are often processed instantly at the time of sales, and you can pay through EMIs over a period. You may be required to submit basic documents such as PAN card, Aadhaar, and bank statements.

c. EMI Card

A few NBCs and bank offer EMI card facilities to buy products on EMI. It is designed especially for EMI purchases. It works like a prepaid pr credit card but focuses on converting your purchases into EMIs at the point of sale.
  
3. Compare EMI Offers

Not all EMI deals are the same, so it is important to do your research:

•    Interest rate: No-cost EMI options mean zero interest, but standard EMIs have interest rates that can vary.
•    Processing fee: Some lenders charge a one-time processing fee, while others may waive it.
•    Tenure: Longer tenure reduces your monthly payment but increase the total interest paid.
•    Downpayment: Some plans require downpayment, while other don’t.

For example, if you are buying a phone for ₹30,000:
•    A 6-month EMI at 0% interest would be ₹5000/month (no extra cost)
•    A 12-month EMI at 12% interest would be around ₹2,667/month, but you end up paying a total around of around ₹32,000/

4.    Choose Your Phone & Complete Your Purchase

Once you’ve selected your EMI plan, choose a phone and apply for the EMI at the checkout section. Submit all the required documents for verification and get the instant approval of your purchase. You can also visit Poonawalla Fincorp’s nearest enrolled dealership store, select the product, verify your eligibility and submit the required documents to purchase your new phone. 

7 Tips to Get the Best EMI Deal

1.    Compare Offers: Don’t go with the first EMI plan, compare across platforms and banks.
2.    Look for No-cost EMI: These are the most cost-effective since you don’t pay extra interest.
3.    Set a Budget: Analyse your finances and set a budget for your purchase and repayment. 
4.    Read the Fine Print: Before you sign on the loan agreement check all the details about the loan, including terms and conditions, fees, and potential consequences of not meeting the agreement's terms. 
5.    Check for Down Payment Offers: Some plans may require a down payment.
6.    Watch for Festive Discounts: Sale seasons often bring attractive EMI deals.

To Conclude

Buying a new phone on EMI is a smart financial choice, enabling affordability and flexibility. By understanding different EMI options, eligibility criteria, and repayment terms, you can make informed decisions. It gives you multiple choices to choose from, such as credit card, Consumer Durable Loan, EMI Card etc. However, if you need a phone in an emergency or at earliest, apply for Poonawalla Fincorp’s Consumer Durable Loan. Get high loan amount and instant application and disbursal in no time. 

Frequently Asked Questions

1.    What is an EMI Card?
An EMI card is a pre-approved financial tool that lets you buy products and pay in Equated Monthly Instalments (EMIs) without full upfront payment. s

2.    What is down payment in EMI?
Down payment is an initial amount paid upfront when buying on EMI. A higher down payment reduces loan and interest, while a lower one increases EMI costs.

3.    Does EMI affect my credit score?
Paying EMIs on time can improve your credit score, but missed payments may negatively impact it.