Many stores and banks offer products with low EMI (Equated Monthly Installment) plans. The advertisements make it look very easy: “Buy now, pay only ₹1,000 per month!” But low EMI offers can sometimes be more expensive than they appear.
The problem is that low EMIs often come with longer repayment periods. For example, a product costing ₹50,000 might be offered at ₹1,000 per month for 60 months. A little monthly payment will be easy for you, but in reality, you are paying ₹60,000 rather than ₹50,000. That extra ₹10,000 is the interest and charges you pay over time.
Processing fees, late fees, or penalties for early payments are additional hidden expenses. Additionally, your monthly budget may be impacted if you have several EMIs due at once. One late payment could lower your credit score and make it more difficult for you to receive loans in the future.
To avoid the trap of “cheap credit,” always calculate the total cost before agreeing to an EMI plan. Check and calculate the interest rate, the number of months, and any extra charges applicable. Compare it with the original price of the product. Sometimes, saving and buying later without an EMI is cheaper and safer.
Low EMIs can be helpful for managing cash flow, but understanding the real cost is important. Don’t be fooled by small monthly amounts — always look at the bigger picture to protect your money and financial health.