Mobile phones have become status symbols these days. Having the latest smartphone with the best quality camera and the most advanced features is a dream for many. While many people find it challenging to manage their finances and fund their purchases, Fintech companies give a ray of light by offering mobile phones on EMIs. However, here are a few things to consider before buying an EMI mobile.
Calculate the Budget
Don’t go overboard while selecting a mobile phone. Even if the buyer can buy it on EMIs at no cost EMI, calculating the budget is essential to manage repayment. The credit provider will spread the mobile phone’s price into a limited number of EMIs over a certain period. For the buyer, it is vital to know the EMIs and ensure they conveniently fit into their budget. If not, opt for a lower-priced mobile phone that’s easier to repay.
Study the Creditor’s Terms
Go through the creditor’s terms and conditions before buying a mobile on EMI. They must offer high-quality products from original companies in brand-new condition. Also, look at their returns and replacement policy, warranty, additional charges, etc. Some companies also have a ‘refer and earn’ scheme, allowing buyers to purchase their mobile at a lower cost than its original price.
Down Payment
Check the down payment a buyer must make to purchase their selected mobile phone. Down payment is the upfront money they must pay. It must be a small percentage of the mobile’s price, and the fintech company must fund the rest of the purchase. Some companies also offer a no-cost EMI option, allowing buyers to purchase their mobile at no interest cost. That means they pay their mobile’s price in EMIs without paying anything extra.
Credit Card Requirement
A reputed fintech company allows buyers to convert their mobile purchases into EMIs without asking for a credit card. When a buyer uses a credit card, the credit card company pays the mobile’s price upfront and adjusts it into the buyer’s credit card bills along with the interest charges. Such a policy renders the no-cost EMI option meaningless. Many buyers who do not have a credit card cannot buy an EMI mobile in this way. So, the company from where the buyer purchases the mobile phone must accept payments from a debit card.
Documentation Requirements
When a fintech company credits money to purchase a mobile phone, they ask for a few documents to verify the buyer’s identity, address, and income. These include the Aadhaar card, PAN card, utility bills, passport, voter ID, bank statements, salary slips, etc.
The company should not call the buyer to their office to submit the documents. They must support a digital documentation procedure where the buyer can scan and upload the necessary documents. It is also vital to ensure that the company keeps the buyer’s records and other details confidential.
Purchasing a mobile phone is no longer hard on a buyer’s budget, irrespective of its price tag. However, it’s crucial to keep these points in mind and make an informed decision.
