In the current era, the purchasing power of individuals has definitely increased since the concept of EMI came into existence. As a result, they have made it easier for people to purchase items they may not have been able to afford upfront. To buy electronics on EMI, it is best to break up the cost of the item into smaller monthly payments as it helps individuals manage their cash flow in a much better manner.
Moreover, not only this, but it also helps those who, in the first place, may not have been able to afford something upfront. Further, there is no need to save up for the full amount when it comes to making purchases. This is very useful for big-ticket items like cards, houses, gadgets, or electronic appliances.
What is an EMI?
It is a fixed amount that is to be paid by a borrower to a lender at a fixed date every month. The EMI consists of both principal and interest components, which are calculated based on the amount of the loan, rate of interest as well as tenure.
Keep in mind that the EMI remains the same throughout the total tenure, although the portion of the payment that goes towards the principal and interest changes over time. This is commonly used for personal loans, home loans, car loans and other types of loans where the borrower needs to make regular payments to repay the amount of the loan with interest.
What are the best EMI options available?
The top two EMI options available are a credit card and EMI card. However, in recent years, the latter has gained much popularity due to the features and benefits it offers. From interest-free EMIs to longer repayment tenures, you name it, and it has it. Moreover, the organizations that offer such cards are very customer-centric, so it offers pretty beneficial features.
Around three months ago, I was planning to purchase a few mandatory appliances for my kitchen. However, I was short of funds and was not willing to spend all at once. This was when one of my colleagues told me about the EMI card offered by Bajaj Finserv that enables without credit card EMI shopping easily.
If you are also planning to avail such a card for purchasing purposes, instead of a credit card, an EMI card is one of the best choices you’ll make.
What are its advantages?
● Minimal documentation
One can apply for this card online/offline. Remember that it doesn’t matter which mode you use; very basic and minimal documentation is involved here.
● Flexible Tenure
Purchasing anything from this card offers a very flexible repayment tenure, generally from three months to two years.
● Pre-approved loan
This card comes with a loan amount of Rs 2 lakh.
● Digital Wallet
There is no need to carry this card everywhere. This is because you can easily use it via the Bajaj Finserv Wallet application on your smartphone.