Paying cash instead of EMI might be a better option if you have the cash on hand to purchase the product in one go. The second case will incur an interest expense since interest expenses are charged in the case of the second option. The cost of the product increases as a result of this interest. You should pay in cash if you have the funds to do so, and purchasing the product with these funds won't negatively impact your finances.
When the price of the product is high, and you might be vulnerable financially if you use your cash reserve to purchase it, then buying the furniture on EMI is the best option. By making monthly payments for a fixed tenure, Equated Monthly Installments (no cost EMI means) allow you to make purchases that are above your budget.
Benefits of Shopping Furniture on EMI
In addition to the affordability of EMIs, everything is much more accessible and fascinating. As a result, it offers several benefits, including:
A budget that allows for overspending
If you didn't have furniture on EMI, you would have pushed expensive purchases to the back of your mind. Consumers can make monthly installments, giving buyers and traders an advantage in boosting sales.
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It's easy on the wallet
As a result of the borrower's ability to repay the principal loan amount and tenure, the furniture on EMI amount is determined. The borrowers will be able to pay back the amount in EMIs easier this way. There will be no adverse effect on their monthly expenses as a result of this change.
Options for flexible EMIs offered by banks
Nowadays, banks encourage their customers to make EMI payments. Depending on the borrower's needs and convenience, the monthly installment and repayment tenure will be adjusted.
Although one must be aware of the consequences that may result, such as the inability to make an early payment, other hidden charges, and fees associated with skipping installments.
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