Saving for a costly phone can beat paying it off in EMIs

A Hindustan Times feature, published as part of the outlet's sponsored consumer-connect series and created independently by the brand rather than its editorial staff, compares buying an expensive phone on EMI with saving up for it instead. Financing a Rs 1 lakh phone over 12 months at 15 percent annual interest works out to an EMI of about Rs 9,025, with total repayments of roughly Rs 1.08 lakh, including about Rs 8,300 in interest, before fees and taxes. The buyer gets the phone immediately, even as it starts losing value straight away. The feature contrasts this with investing Rs 10,000 a month in short-term bonds: at an illustrative 12 percent annual return, ten months of contributions could grow from about Rs 1 lakh to roughly Rs 1.05 lakh, though the first installment earns returns for longer than the last. It adds that returns, liquidity and maturities vary between bond products, and that so-called zero-cost EMIs can still carry hidden fees or lost discounts.