So you want to buy mobiles on EMI without credit card? To begin with, you should look at the price band and whether you need to spend that much or go for a lower price band phone. This is an area which needs a little thought.
The features that you need may be available in a slightly cheaper phone. However, if it’s the model which is the key then, of course, these things do not matter. But if you are a little sensible, then you could save some money and still have a phone that works for you.
To buy a phone on EMI means taking a loan and paying for it on a monthly equated installment basis. Basically, you pay X amount every month. Be aware that once you take the credit, this is the amount you will have to pay, no matter what. This is a fixed liability. Consider this fact before buying that new smartphone.
Select Your Smartphone:
- The first thing is to select the model. Which brand and which model. Some brands offer discounts, look for those if they suit your needs. Check to see which company is offering the best discount. Check online e-commerce sites to see if there are discounts and whether these are better. Sometimes these sites offer good discounts.
Carefully Consider The Terms:
The second trick is to see what terms are being offered. What is the tenure of the loan you wish to avail? Typically it ranges from 6 months to 24 months. See if you can get an interest free deal. That way you can save money. But check to see if the price is correct. Compare with discounts being offered by the brands.
Figure Out The Method Of Payment:
There are several ways of buying a phone on EMI. One is using a credit card. However, be aware that should you fail to pay the credit card debt every month, for the EMI which has been debited from your card amount, you will pay usurious rates of interest.
This will add to the dues on your card and should you fail several of these monthly payments to your card account, you will find yourself paying out large sums of money.
Alternatives To Credit Cards:
If you do not have a credit card, you are a student or do not have any salary income, but you have income from other sources, then the best way is to buy through NBFC companies. These do not need a credit card, and their processing is also quicker.
Purchasing The Selected Mobile Phone Using Selected Method:
Once you have selected the NBFC, go to a designated store, which the NBFC works with and choose your phone. Be careful not to choose something which is beyond your means. It is better to be conservative unless you have enough funds to rely on to repay the installments.
The executives at the store will help with the documentation, and the process typically does not take long provided the documents are in order.
Documentation Required:
NBFCs generally need an Aadhar card, PAN card, and a canceled cheque. While the ID documents are okay, beware of handing out post-dated cheques one for each installment. If a cheque bounces and you are unable to make good, the amount of prosecution is a severe danger.
How To Pay:
While finalizing the loan and the EMI payable, etc., try and make as big a down payment as possible. The larger the down payment, the smaller the loan and easier the repayment. Next is the tenure of the loan. The shorter the tenure, the lower the interest, unless of course, it is an interest-free EMI.
But sometimes models that you particularly want to buy are not covered by an interest-free EMI. However, the tenure would depend on how much you can afford, comfortably, every month. Sometimes a longer tenure is advisable so that the monthly payments can be easily met.
Things To Be Careful About:
Finally, read and understand the loan documents which you sign. You need to read the fine print to understand exactly what you are getting into. Also, check to see that the store supplies you with a new phone. The sealed box should be opened in front of you. While this may seem silly, all precautions are always a good idea.
Better safe than sorry. Prepare a plan to keep sufficient money in the account from where the payments will go from. It is always wiser to save a little extra in that account to prevent a bank charge or some other charge to deplete the account and for the EMI installment to fail.
There are some problems with mobiles on EMI without credit cards but keeping in mind these secrets, you can overcome them.
A failed installment means penalties and people calling up at all odd hours asking for payment -and that’s problematic. However, if you have followed these tips before buying, you should go through the installments smoothly. Meanwhile, you can enjoy your new phone.
