💳 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
✨ Download this article as a PDF — perfect for offline reading or sharing with friends on social media!
Connect with Kannan M
LinkedIn, Twitter, Instagram, and Facebook for more insights on AI, business, and the fascinating intersection of technology and human wisdom. Follow my blog for regular updates on practical AI applications and the occasional three-legged rabbit story.
For "Unbiased Quality Advice" call 📞 Message me via blog
▶️ YouTube: Subscribe to our channel
Blog - https://radhaconsultancy.blogspot.com/
#CreditLiteracy #HiddenCosts #ZeroCostEMI #KannanMInsights #PFTidbits
No comments:
Post a Comment