Instalments that ‘fit’ fine

If a small salary or tight budget is the modern shopaholic’s bane then equated monthly instalment (EMI) is his nirvana.

With rapidly changing and globally-exposed lifestyles, tastes and desires, Jaipur’s youth are seeking different and newer means to keep their wardrobes updated. Also, western culture has fuelled a demand for designer clothing and EMIs on apparels have allowed youth to shop freely.

With easy instalment plans being offered by retail outlets of Indian and international brands Jaipur’s college-going students, young techies and middle-aged professionals are busy swiping their credit cards. The offer is wooing those who are often put off by the heavy price tag.

Gaurav Kaushik, a management student who loves to dress well, shares his dilemma with DNA. “Everytime I visited a lifestyle store and found an eye-catching outfit, I’d check the price and quietly walk away. But now, I can buy expensive clothes on instalments and the repayment is interest-free. Mostly, I buy clothes during off-season sales or once every quarter,” he says.

Hemant Swaroop, a school teacher, says the extension of his credit card grace period has helped him manage his monthly budget without giving up on the smaller retail pleasures.

“I had a credit card but the grace period to pay back was 50 days. Now, I get a grace period of three months which helps me manage my monthly budget in a better way.”

At present, this credit payment facility is available for credit card holders of HDFC, Citi and Standard Chartered banks, with of course, a small asterisk. The minimum amount for the bill should be at least Rs1,500, this will translate to interest-free repayments of Rs500 a month. And if somebody buys apparel worth Rs5,000 then re-payment can be made in six-months.

It is a win-win situation for both youth as well as retail outlets as their sales have increased. Amit Yadav, Levi’s store manager, said, “Our sales have surged with the credit-on-payment scheme. At present, EMI scheme contributes to 5-10% of our total sales.” Seeing this, other retail outlets like Provogue have also announced launch of similar schemes.

With rising popularity of such schemes, banks offer cards to those who have good track record. Bhavesh Agarwal, manager, Citi Bank, said, “Banks offer credit card facility to account holders on the basis of age group, profile, transactions and various other parameters. Surely, these include young professionals as well.”