💳 The Truth Behind “Zero-Cost EMI”
Series: #PFTidbits by Kannan M. – 3
You see it everywhere:
“₹0 Down. 0% EMI. Instant Approval.”
Sounds perfect, right?
Here’s what many don’t see:
🧾 It’s Not Really Free.
A ₹25,000 phone on a 12-month EMI plan often ends up costing ₹27,500—or more.
Why?
Processing fee quietly added at checkout
Higher EMI-only pricing (vs. direct-buy discounts)
Bundled insurances or GST-on-interest clauses
🎯 Same Brand, Two Prices.
Retailers often list two options:
Model A – ₹25,000 (for one-time payment only)
Model B – ₹26,500–₹28,000 (EMI available)
Specs may look “slightly” different, but the price bump is real—and deliberate.
You walk away thinking you got a better model, but what you really bought was convenience at a premium.
💬 A Real Story
My domestic helper wanted a ₹7,000 phone.
When he asked for EMI, the shopkeeper said:
“EMI only if you take the ₹14,000 model.”
Same brand, slightly higher end, but double the price.
He nearly agreed—because paying ₹7,000 outright would mean giving up his entire salary.
❓ Is EMI Really “Zero-Cost”?
Think twice before signing the EMI slip.
You’re not being defrauded—but you are being nudged into spending more under the illusion of affordability.
📌 Smart buyers ask:
“What’s the total cost—not just the monthly bite?”
🧠 This is just one slice of a much deeper story. Explore the full analysis in our feature on India’s Household Debt Surge—a 30-year lens on how EMIs, savings erosion, and behavioral shifts are reshaping middle-class finance. 🔗 See the full breakdown on Perplexity Pages
With new tools in hand, we’re not just scratching the surface—we’re drilling deep. The numbers speak louder when stitched with context.
Tidbits Series
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