Now Reading: Saving for a ₹1 Lakh Phone May Cost Less Than EMI
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Saving for a ₹1 Lakh Phone May Cost Less Than EMI
A ₹1 lakh smartphone bought through a 12-month loan at 15% annual interest would require an EMI of about ₹9,025. Total repayments would be roughly ₹1.08 lakh, including around ₹8,300 interest, before…
The Story in Brief
A ₹1 lakh smartphone bought through a 12-month loan at 15% annual interest would require an EMI of about ₹9,025. Total repayments would be roughly ₹1.08 lakh, including around ₹8,300 interest, before fees, taxes and other charges. The buyer gets the phone immediately, although it begins losing value.
The article compares this with investing ₹10,000 monthly in short-term bonds. At an illustrative 12% annual return, ten months of contributions could grow from ₹1 lakh to about ₹1.05 lakh. Returns, liquidity, maturities and availability vary. Zero-cost EMIs may also involve lost discounts or fees.
The Indian Opinion
The comparison usefully highlights how monthly EMIs can hide the total cost of an expensive phone. However, the suggested 12% return is illustrative, not assured, and bond products may not suit every saver. Readers should check fees, taxes, maturity dates and access to money. Claims that saving will always beat financing are too broad because personal cash flow and product terms differ.
Source: www.hindustantimes.com
This story was synthesised by AI from the source linked above.
