We are now in the sphere where a person is buying things online, and there are a variety of products that make consumption easy and accessible to a lot of individuals. Due to the modern digital financing trends and inclusion, a person can make their payment in a variety of ways.

For example, one can use UPI to pay for BNPL (Buy Now Pay Later) options, which will help a person to pay for the goods later. The third scenario a person can do is to buy the products in EMI (Equated Monthly Installment), which divides the net amount of a product along with some interest and makes the purchase affordable to that person.

Andromeda loans is India’s largest distributor of loan products for people, their homes, businesses, and properties.

In this blog, we will examine the nuances of EMI plans and what one must consider when purchasing products under the EMI option. also In an era where financial services are becoming increasingly accessible, the State Bank of India (SBI) offers a unique opportunity for individuals looking to venture into the entrepreneurial world through its Direct Selling Agent (DSA) program. The SBI DSA registration process is designed to incorporate freelancers, entrepreneurs, and business owners into SBI’s expansive network, enabling them to promote various banking products and services. This article provides an in-depth look at the SBI DSA registration process, the benefits of becoming a DSA, and the potential impact on your career and financial growth.

  1. Checking Your Financial Stability

It’s good financial practice for individuals to check their financial status when opting for loans. Depending on that, one can determine whether the purchase of a particular product is beneficial for them or not.

Many people think that EMI is a buying option that automatically divides the entire amount into monthly quarters. However, that’s not true; rather, it’s a kind of loan with a certain percentage of interest and includes a processing fee for this purchase.

A person needs to check with the different lenders, and based on that, they can determine the terms and state whether they are feasible in the current financial state to pay the monthly installments.

  • Understand The Concept of Total Cost of Ownership

When an individual buys a product using EMI, ownership of that product doesn’t immediately fall on that person. For example, those who have purchased a motor vehicle using EMI options don’t have ownership directly after the purchase.

Rather, it was spread thin between several months, and once the purchase is complete, with the return of the entire principal and the interest rate, it can be stated as the completion of the purchase.

Therefore, the first step is crucial before any purchase, as it allows an individual to commit to the EMI repayment, and through that, they can complete the loan payment to the lender.

  • Check The Hidden Charges

Whenever we are going for a loan option, it’s quite common that there will be hidden charges, and in that case, it’s quite important for a person to check how much is there in the processing fees and how that affects the overall cost of the purchase.

If you are purchasing some products under a budget, then in that scenario, it’s quite fruitful to know in detail about these charges and to consider whether or not to buy that particular product.

In some purchases, the product seller goes incognito when selling certain items. Therefore, it’s useful to contact the financial company for the charges and learn about that particular purchase in detail.

  • Be Mindful of the Credit Score

A credit score determines many factors when purchasing something with credit. A person with a higher credit score gets better deals and access to certain products as their repayment record is quite good, and for that reason, lenders can rely on that type of customer.

 A DSA partner is someone who can help a customer check this aspect. Based on that, they can offer better loan terms with lower interest rates and can tell a person about different banks and NBFCs that are offering better offers due to higher credit scores.

It’s a good practice to check the credit score before availing of any EMI option and fix it so that one doesn’t lose some valuable credit points.

  • Consider Going For the Route of a Down Payment

Since the EMI option is a kind of loan that financial institutions provide to the customer, they need to pay interest to the lender as they are financing that product at that moment.

Here comes the importance of a down payment, as it helps a person reduce the EMI amount and makes the purchase a little affordable. An individual can easily pay off the debt within a shorter time.

These are the top 5 concerns and a kind of checklist that one must follow while purchasing some products in credit or EMI.

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