EMI or Equated Monthly Installment is a term frequently used in the finance world. It is a mode of repayment of loans or purchases where the total cost is divided into equal monthly payments. This mode of payment has made it easier for individuals to make big purchases that would otherwise be difficult to afford. EMI is best known as a method of purchasing products like electronic gadgets, vehicles or furniture with a long-term repayment option. In this article, we will take a deep dive into what EMI is all about and its benefits.
BNPL or Buy Now Pay Later is another trend that has emerged in the market, making purchases more convenient. The concept of BNPL allows individuals to purchase products without paying any upfront amount. With BNPL, the total cost of the product is divided into several installments with a fixed date of payment. It is an effective way of purchasing high-value products without disrupting your financial budget.
Piano on EMI is a popular example of BNPL, where individuals can purchase their dream piano without paying the full cost upfront. The price of a piano can be quite expensive, and not everyone can afford it. However, with EMI options, individuals get the opportunity to own a piano and pay installments.
One such instrument that helps you convert your high-ticket purchases into No Cost EMIs effortlessly is the Bajaj Finserv Insta EMI Card. The Insta EMI Card comes with a pre-approved limit of Rs. 3 Lakh also offers you the flexibility to choose a repayment tenure of your convenience, ranging from 1 month to 60 months.
Benefits of EMI
EMI has several benefits, and some of the significant advantages are:
- Easy Repayment
EMI provides an easy repayment option, which allows individuals to break down the cost of their purchase into smaller, monthly installments. This way, individuals can repay their loans without burdening their financial budget.
- Low-Interest Rate
The interest rates for EMI transactions are on the lower side. It helps individuals to manage their finances better, and they do not have to worry about the high-interest rate charges.
- Increased Affordability
EMI payments for a product make it more affordable, especially for high-value purchases. By dividing the cost into several installments, you can buy a product with ease and without stressing about the affordability.
EMI provides the flexibility of repayment. Individuals can choose the number of installments or customize their EMI repayment schedule, as per their convenience. You can even choose the date of repayment to suit your financial budget.
- Helps Build Credit Score
EMI is a loan repayment option that can help individuals build their credit score. By repaying EMI installments on time, individuals can improve their credit score, which, in turn, can help in getting credit easily in the future. A good credit score improves your creditworthiness and makes it easier to receive loan approvals.
Tips for Using EMI
EMI options can be tempting, and individuals need to be cautious while opting for it. Here are some tips that can help you use EMI wisely.
- Choose the Right EMI Plan
Before making any EMI payments, research and compare different EMI plans, looking at factors like interest rates, repayment period, etc. Choose the one that offers low-interest rates and suits your financial budget.
- Read the Fine Print
Reading the fine print and understanding the terms and conditions of the EMI plan is crucial. It helps to avoid surprises like hidden charges, penalties for late payment, etc.
- Keep Track of Payments
Keeping track of EMI payments is necessary. Maintain a record of the EMI installments, payment date, and payment status. It helps in staying organized and avoiding any unnecessary and unwanted charges.
- Avoid Over Indulging in EMI payments
Avoid over-indulging in EMI payments. It can increase your debt and put unnecessary pressure on your financial budget. Limit EMI purchases to essential products, and try to pay off the EMI installments as soon as possible.
Piano on EMI
Piano on EMI is a popular and convenient option for individuals who want to own a piano without paying the full amount upfront. Piano on EMI is an affordable way of purchasing a piano, which otherwise may not be possible. The EMI payments offer flexibility in terms of the repayment schedule and the number of installments.
Piano is an instrument that requires considerable investment, and Piano on EMI provides a viable purchasing option for many aspiring piano players. Owning a piano can encourage individuals to hone their musical skills, explore their creative side and even use it as a form of relaxation after a long day.
EMI provides an easy payment option that is affordable and flexible. BNPL, on the other hand, enables individuals to purchase high-value products without any upfront payment. It is essential to use EMI wisely, keeping in mind the tips mentioned above, while Piano on EMI is an excellent option for aspiring pianists who wish to own a piano without breaking their bank. With a bit of research and understanding of EMI options, individuals can make smart purchases and manage their finances better.