EMI Or Full Payment: Which Is Smarter During Festive Sales?

Shoppers across the country are preparing for expensive purchases this Diwali season. Everyone wants to take advantage of the festive discounts on a wide range of products from luxury goods, home décor and gifts to electronics and appliances.

Many retail stores, e-commerce platforms and top brands are offering heavy discounts on various products. But as offers start coming in, people often wonder whether to pay the full amount at once or make payments in instalments.

If you've saved enough money, paying the full price is often the better choice. This is because you might get extra discounts or cashback, and the product is yours immediately. You don't have to wait for monthly payments.

However, spending a large amount at once can leave you short on cash for other expenses, especially during the festive season.

In recent years, equated monthly instalments have become increasingly popular, especially with the rise of no-cost EMI options promoted during festive sales. These schemes allow buyers to pay in instalments without interest charges.

The EMI offers allow buyers to pay in smaller amounts every month. This is helpful if you have other costs to manage. But if the EMI includes interest, you'll end up paying more than the actual price. For example, buying something worth Rs 70,000 with a 12% annual interest rate on a six-month EMI means your total payment will be more than Rs 70,000.

Paying the full amount means you own the product right away and can often get extra discounts or cashback. The downside of such purchases is that it takes a big chunk out of your wallet, which can make managing other expenses difficult.

The EMIs, on the other hand, let you spread the cost over several months, which makes it easier to afford expensive items without feeling the pinch all at once.

The EMIs give buyers financial flexibility and enable them to enjoy the festivities without reducing other expenses by distributing the cost over a number of months.