A complete guide to buying a smartphone on EMI this Diwali

Why buy a smartphone on EMI during Diwali?

Diwali brings plenty of festive-related expenses, and paying, a significant sum like ₹50,000 upfront for a phone might affect other purchases you have planned for during this time. However, this auspicious season is also best suited for new purchases, especially with so many excellent offers and deals available. With a suitable mobile phone EMI option, you can just split the total cost into small, manageable monthly payments.

But choosing to buy phone on EMI just because the monthly payments look small isn’t always a smart move. Festive offers must be evaluated based on both EMI affordability and the overall purchase cost. Review the total repayment cost of your smartphone EMIs, including interest and processing and other charges. Remember to compare different mobile EMI options to choose a deal that matches your monthly budget and overall financial goals.

How does a smartphone EMI plan work?

Buying a smartphone on EMI lets you split the total cost of purchasing the smartphone into fixed monthly instalments over your chosen tenure.

You choose a smartphone based on your budget, features, and other preferences. Explore available mobile phone financing options and eligibility terms (if any). Next, choose a repayment tenure that fits your repayment capability. It is going to decide how long you pay for the phone and how much total interest you owe. Make the purchase and ensure timely EMI payments throughout the selected tenure for a successful smartphone finance.

How to check if a Diwali smartphone EMI fits your budget?

A major mistake that buyers generally make during a festive season purchase is considering only the monthly EMI when financing a smartphone purchase. The basic thought is: The lower the EMI, the better the deal. What most fail to realise is that a lower EMI means a longer repayment tenure and a much higher total cost. So how to check if a smartphone EMI is best for your purchase?

The first step is to take note of your monthly income along with your fixed and variable expenses. See how much disposable income is available to afford the smartphone without impacting your festive finances. It is important to keep savings after Diwali for emergencies and long-term goals. Here are the primary expenses to consider:

• Rent
• Utilities like electricity, water, gas
• Groceries
• Transport
• Existing EMIs

Now comes the next important part. Before choosing an EMI for smartphone this Diwali, remember that additional charges may apply. Instead of just focusing on the monthly EMI, you need to also consider:

• Down payment
• Repayment tenure
• Interest rate
• Processing fees or other charges
• Total amount payable

If the calculation overwhelms you, you can use the Mobile EMI calculator to determine monthly loan EMI, total interest, and total amount payable. A smartphone EMI calculator helps you choose a suitable repayment plan with affordable smartphone EMIs. Always check the overall repayment cost to prevent any future surprises.

Step-by-step: How to buy smartphone on EMI this Diwali?

Upgrading your smartphone on EMI can be a game changer this Diwali. Once you understand the process to buy mobile on EMI, you will be one step closer to holding your new device. Let’s take you through the mobile phone finance process step by step.

Select the smartphone

Do you already have a specific smartphone in mind? If not, compare models by evaluating your daily usage, personal needs, and budget to pick the right device.

Check your eligibility

Based on the lender or bank deal, your EMI eligibility may vary. For instance, eligibility criteria to buy a mobile on EMI through TVS Credit requires you to be:

• An Indian citizen
• Within 18 – 65 years* of age
• Salaried / Self-employed

Documentation

Keeping the required documents handy goes a long way toward speeding up the purchase journey. You may have to furnish mandatory proofs of identity, income, and address

For KYC verification, following are some of the valid documents:

• PAN Card
• Aadhaar Card
• Passport
• Driving Licence
• Voter’s ID

For address proof, you may be asked to provide:

• Electricity Bill
• Passport
• Ration Card

Pick a financing option

Explore financing offers available on your selected phone. Also, check exclusive Diwali offers, including zero down payment, no-cost EMI and flexible tenures. Choose a finance partner, considering interest rates, repayment tenure, additional charges, and total amount payable.

Choose the EMI tenure

Choose an EMI tenure, based on both monthly EMIs and total repayment amount. Usually, you can choose a tenure of 3, 6, 9, 12, or 24 months. Make sure you can easily afford to pay monthly instalments.

Finish the purchase

Submit all required financial information and documents to complete your verification and approval process. Complete the purchase process using your preferred payment method, such as credit and debit cards.

That’s it. Enjoy your smartphone! Pay your EMIs on time to avoid late fees and penalties.

Picking the right EMI tenure for Diwali mobile purchase?

The tenure of your Diwali smartphone purchase directly impacts monthly EMIs and overall repayment.

If you choose a shorter tenure, you will have to pay back the Mobile Loan within a shorter period. So, the monthly EMIs will shoot up but you may have to pay less in overall interest costs. Choose a shorter tenure if you want to pay off your loan faster without extended or more interest costs and can easily manage higher EMIs.

On the contrary, a longer mobile EMI tenure gives you more time to repay the loan with lower monthly instalments. but the trade-off is a higher total interest cost over the life of the loan.

Let’s take a look at an example. Suppose you buy a smartphone on EMI at 18% interest rate. See how your repayment tenure affects your total repayment.

Do not overburden your finances by going with a shorter tenure. Choose phone EMI plans that balance both monthly EMIs and overall repayment and does not dampen your Diwali celebration.

What to check before buying smartphone on EMI this Diwali?

Understanding the total cost of your phone loan before buying on EMI is a wise and sensible decision. In addition to monthly EMIs, you must check the following smartphone finance charges:

• Processing fees: Find out the one-time charge levied by the lender to process your mobile loan.
• Repayment schedule: Review the repayment schedule to verify your monthly EMI, payment dates, number of instalments, and tenure.
• Foreclosure charges: Check if the lender charges a fee for closing the loan ahead of schedule.
• Bounce charges: Check for any penalty fees levied if an EMI payment is missed on the due date.
• Penal charges: Review the penal charges levied on overdue amount
• Total payable amount: Calculate the total payable amount with EMIs and applicable charges to determine the true cost of financing the smartphone.
• Festive Offers: Explore and compare multiple Diwali discounts, cashback, and EMI plans. Find a deal that makes your purchase most affordable.

Only after reviewing smartphone EMI charges and phone EMI terms, you should make the final decision. A well-informed choice is always a sound decision.

Diwali smartphone EMI Offers: What should you look for?

With the Diwali festive season here, you may come across a variety of promotional offers, discounts, cashback, and exchange bonuses. To get the best deal out of festive offers, one must not blindly trust the marketing promises.

What you need to do is calculate the total amount payable for the smartphone after considering all discounts and charges. For instance, a deal may offer a smaller upfront discount but a better exchange value for your old phone. Compare Diwali smartphone offers to find the best balance between your monthly commitment and overall repayment cost.

Smartphone offers on EMI also involve promotional conditions and specific terms and conditions. Make sure you are eligible for the deal and receive all of its promised benefits. By focusing on the total cost instead of promotional benefits, you can maximise your savings with Diwali mobile offers.

FAQs

1. Can I buy a smartphone on EMI without paying the full price upfront?

Yes, you can typically buy a smartphone on EMI without paying the full price upfront. Based on your eligibility and financing option, you can repay the phone cost through monthly EMIs over a chosen tenure.

2. What documents are generally required to buy a smartphone on EMI?

Based on lender’s terms, you may be asked to provide identity, address and income proofs. Some key documents required for your mobile loan are Aadhaar card, Voter ID, PAN Card, Passport and Electricity Bill.

3. How is the EMI for a smartphone calculated?

The EMI for a smartphone is usually calculated based on loan amount, interest rate, and tenure.

4. Can I choose the EMI tenure when buying a smartphone?

Depending on the lender, EMI options, and terms, you can usually choose a repayment tenure that matches your budget when buying a smartphone.

5. Does buying a smartphone on EMI require a down payment?

A down payment is usually not necessary when buying a smartphone as many lenders like TVS Credit offer zero down payment options.

6. Can I buy a smartphone on EMI during Diwali offers?

Yes, there are several Diwali deals available that offer smartphones on EMI.

7. What factors should I check before choosing a smartphone EMI plan?

The key factors to check before choosing a smartphone EMI plan include phone price, monthly EMI, EMI tenure, processing fees & other charges, festive offers, and total repayment.

8. Can I buy a smartphone on EMI if I already have other EMIs?

Yes, you can buy a smartphone on EMI even if you already have other EMIs subject to lender’s terms, your eligibility, and credit profile.

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