The Benefits and Drawbacks of 36 Months EMI on Mobile Phones

The Benefits and Drawbacks of 36 Months EMI on Mobile Phones

Mobile phones have become an essential device in our daily lives due to their convenience and versatility. However, not everyone can afford to buy a new phone outright. This is where EMI or Equated Monthly Installment comes in, allowing individuals to pay for their phones in installments over a predetermined period. In recent years, many vendors have started offering 36 months EMI on mobile phones, which can be both beneficial and challenging. In this article, we explore the various benefits and drawbacks of 36 months EMI on mobile phones.

The Benefits:

1. More Affordability

A 36 months EMI scheme can make buying a new smartphone more affordable for individuals who are on a tight budget. Instead of having to pay the full amount at once, users can pay for their phones by breaking down the cost into smaller monthly payments. This means individuals can own a high-end phone without burning their pockets.

2. Better Options

With a 36 months EMI option, individuals have access to a wider range of phone options. They can choose the phone that meets their needs and budget, as long as they can afford the monthly payments. It also enables the purchase of a more expensive or advanced phone than would otherwise be possible with a one-time payment.

3. No Interest or Low Interest Rates

EMI options usually involve interest rates, but many vendors offer no-interest or low-interest rates for 36 months EMI on mobile phones, making it more appealing to customers. The interest-free periods give people time to pay the cost back without incurring further charges or penalties, allowing them to keep track of their finances.

The Drawbacks:

1. Longer Commitment

A 36 months EMI scheme means individuals will have to commit to paying the installments for 36 months, which can feel like a long time. They will not be able to switch to a new phone or plan unless they settle the outstanding EMI amount. This can be a considerable disadvantage if they have a change of mind about their phone choice or financial situation.

2. Costly in The Long Run

Customers will have to pay more for the phone than its retail price due to interest, processing fees, and other additional costs. Thirty-six monthly installments accumulate a substantial amount of interest, making the phone more expensive in the long run. The interest and other charges must be taken into account when considering the affordability of a 36-month EMI scheme.

3. Credit Score Risks

The vendor offering 36 months EMI will likely conduct a thorough credit check and ask for credit documentation. Late payments or missed installments may affect an individual’s credit score, which can impact their future ability to get their credit applications approved. Repeated failure to keep up with payments may lead to legal action taken by the service provider to recover their dues.

Conclusion:

EMI schemes have become popular in recent years, making buying essential devices such as mobile phones more accessible to people. However, it’s essential to understand the benefits and drawbacks of the 36 months EMI option before deciding on whether it’s right for you. While it might help you acquire a more expensive phone with lower monthly payments, the lengthy commitment and additional costs may outweigh the benefits. Make sure to do proper research, evaluate your financial situation, and read the terms and conditions carefully before making a decision to opt for a 36 months EMI scheme.

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