PERSONAL FINANCE

EMI guide: How to manage instalments amid festive season

There are variety of possibilities for making purchases using monthly payment plans, which reduces the load and aids in managing the monthly.

Maitry Kothari

Updated : Oct 20, 2022, 02:48 PM IST | Edited by : Maitry Kothari

EMI guide: How to manage instalments amid festive season

The majority of Indian households are spending more than usual during the holidays. Many individuals hold off on purchasing homes, gold, and other desired commodities like gadgets and household goods until special occasions and lucky times. It's crucial to budget and save money in advance for upcoming expenses at these periods because costs may increase when planning the celebrations.

There are numerous options available where one may buy using monthly payment plans, which reduces the load and aids in managing the monthly budget. Nowadays, a lot of financial institutions supply customers with short-term loans through programmes like "buy now, pay later." Then there are e-commerce sites that support credit card EMIs. (Also Read: Dhanteras 2022: How to buy digital gold through Paytm and Google Pay, here’s step-by-step guide )

Prashant A Bhonsle, Founder & CEO of Kuhoo Fintech said that one must ensure that they are using the right financial partners while availing options like Buy Now Pay Later. "Various factors such as what is the loan tenure, principal amount, different interest rates and processing fees being charged on the transaction must be looked into. Prioritising your wishlist and sticking to a well-defined budget determined earlier is always advisable," said Bhonsle, cautioning people against skipping an EMI.

By deferring this month's outgoing expenses to the following month, choosing Buy Now Pay Later may aid you if you have used up all of your money but still need to make a purchase. However, it's always advised to keep your expenses within your means because doing so will assist you avoid default.

Anil Pinapala, CEO and Founder of Vivifi India Finance, claimed that having a solid credit history opens doors for you to achieve your financial goals without difficulty.

"A well-devised financial strategy and efficient debt management with utmost discipline are the most essential aspects that bear weightage on an individual’s credit profile. If you’ve opted for a personal loan to manage your finances, managing your debts with discipline becomes crucial," said Pinapala.

The billing cycle of a credit card should also be understood, according to experts, as doing so enables the use of additional credit time. Additionally, you should have enough money in your account to cover all of your EMIs if you have any.

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EMI guide: How to manage instalments amid festive season

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