Should one be buying on EMI on online sales or is down payment a better option?

by Kimberly Allen | July 17, 2017 4:39 am

EMI is the new way of buying stuff when the person going up for the purchase can’t or doesn’t want to come up with the whole money needed for the purchase. EMI is Equated Monthly Instalment which the buyer or basically the borrower of money pays to the bank or the lender of the money to pay off the interest as well as the principal amount over a definitive and pre decided period of time to completely pay off the loan.

If one wants to go up for the EMI system of payment there are many options for them even when they do not have a credit card. There are finance companies which provide money with an EMI system of payback. There are even online calculators which help you decide the EMI on the various loans and decide which are best as per your financial conditions and requirements. The question that arises is whether should one be buying on EMI on online sales or is down payment a better option?

Down payment is the initial cash payment that is made while purchasing an expensive good or service. The down payment is sometimes only a portion of the total cost and this is done to hold the purchase and confirm that you will be buying the entity while you make arrangements for the rest of the amount to be paid.

What is best EMI or Down payment?

The best mode of payment differs from person to person and his/ her financial condition as a whole. In case the person goes for a really expensive device and the person going for the purchase is not capable of coming up with the whole amount required to seal the deal. Then in that case the person can opt for the EMI option and make regular instalments towards the purchase every month. It is always better to first calculate the EMI and then opt for one. Click here[1] to do a quick EMI calculation.

The objects to be purchased online are pretty much easy to go for the purchase as these offer both the options of complete down payment or easy EMI option. Various online finance firms like Slice or the Quicklo offer many options for the EMI. These firms usually concentrate on the students and the EMI decided for them has various offers.  There are other companies like HDFC bank and Bajaj Finance which provide the customers with consumer loans and they have their mode of payment by means of regular instalment.

How does EMI work?

The ones available online are the best options for the EMI. These are also available for the people who don’t have credit card[2] as mentioned earlier and these require to be linked with the customer’s PAN number or the Adhaar card[3]. These also require to be linked with the bank account details and the basic identity address proof which can also be provided by the adhaar number. There has to be some amount paid initially as a down payment as it greatly affects the EMI and helps us to save money in the long run.

In the end

In the end, it is better to go for the option of EMI when there is low income or expectancy of sudden requirement of money in the coming future otherwise the option of single and complete down payment is a really good option because although it compels us to come up with the complete payment at one time, it also helps to save money in the long run that would have been paid as interest in the option of EMI.

Endnotes:
  1. Click here: https://www.upwardly.in/emi-calculator
  2. credit card: https://consumerjungle.org/jungle-talk/good-bad-ugly-credit-cards
  3. Adhaar card: http://adhaarcard.co.in/download-eaadhaar-card/

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