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EMIs feel affordable, but the system quietly inflates your bill. Here’s how small installments make you pay far more than you expect.
Dividing a big purchase into small EMIs tricks the mind into thinking it’s cheaper, pushing you to spend beyond your real budget.
A ₹50,000 phone on 12-month EMI at 8% ends up near ₹54,000, as added interest and fees make it more expensive.
Retailers often remove upfront discounts in the name of no-cost EMI. You end up paying the same amount, just disguised in parts.
Stretching EMIs over 24 months lowers monthly pressure but raises total repayment, making the purchase more expensive than planned.
GST on interest and fees quietly adds to your bill. What looks like a flat EMI often carries invisible tax burdens.
Prepayment charges and foreclosure fees limit flexibility. Even if you have cash later, closing an EMI early isn’t always free.
Small EMIs encourage multiple purchases. Together, they pile up into a heavy monthly burden, eating into your savings.
Always compare EMI vs full payment. Check interest, fees and GST before opting. Choose shorter tenures and avoid stacking EMIs.
EMIs are not bad, but they shift focus from price to affordability. Knowing the true cost helps you spend smarter, not heavier.
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