EMI system - Good or bad for middle class people?

Definitely EMI system helps middle class people to buy the costly products in an installment basis. Though EMI system accepts some extra charges as interest, middle class people reduce some of their expenditures and are able to pay low costs every month instead of buying at a time. Now a days some of the online shopping sites are providing the new facility called "Get back your interest at the ending payment". This procedure can even help middle class people a lot.

EMI or equated monthly system is good scheme for buying durables. Personally I do not favor any loan except housing. Needless to say EMI rduces the monthly disposable income.

EMI system is best for the people who regularly make prompt payments. But nowadays people are misusing it by purchasing lot of things and not able to pay their loan within stipulated time. For those people it is not suitable. It reduces the burden of paying the money immediately.

EMI - Equated Monthly Installments. This system is more popular in India. It is used in all commercial departments that are connected with a common man. People who are not affordable to purchase or buy any product in full cash opts for EMI and pays in installments. On one side this is more useful for middle class people. But on other hand, it might tend to huge burden on a person's head.

EMI is a very good way to spread out one's expenses throughout a year or over a period of time, instead of buying things using cash at one go. Though I used to be in favor of buying things using cash...but EMI options lets you plan and budget for things that you want to buy and then the burden is spread over each month instead of spending money in bulk or at one go.

In the long run although you end up paying nearly double the amount, it is still a boon to many people who cannot pay upfront at one go ! I guess both the customer and the seller are happy since the customer gets his stuff right at the beginning and gets to use it, and sometimes before the end of the term, may be even exchange it ..seller of course makes a good profit!

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

Zero percent interest means it is not free from interest. You have some hidden cost like processing fees are involved in it. If you calculate that you come to know that you are spending more money than the actual cost.

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

Zero percent interest means it is not free from interest. You have some hidden cost like processing fees are involved in it. If you calculate that you come to know that you are spending more money than the actual cost.

Nothing is free as such. One should be cautios not to over use the EMI facility. In a zeal to buy more durables, the disposal income for current needs is drastically reduced thereby causing hardship.

Any kind of loan is cancer. It is always good idea to avoid it.

EMI - Equated Monthly Installments. This system is more popular in India. It is used in all commercial departments that are connected with a common man. People who are not affordable to purchase or buy any product in full cash opts for EMI and pays in installments. On one side this is more useful for middle class people. But on other hand, it might tend to huge burden on a person's head.

This system is more poplar all over the world, We have just bough a home in a foreign country on EMI basis where bank interest is only 5%. And most businessmen and corporate workers do it to keep their capital intact not necessarily the people who cannot afford to buy in cash.

Its somewhat beneficiary but gets some loss. The benefit is any costly item can be buy by the middle class families. The loss is some extra money which is interest.

Despite its disadvantages, EMI is more suitable for people. No scheme is perfect providing all advantages to the people.

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

Zero percent interest means it is not free from interest. You have some hidden cost like processing fees are involved in it. If you calculate that you come to know that you are spending more money than the actual cost.

Not all of us buy each and every thing using EMI option..but on the other hand some do..very well knowing about the hidden cost etc...depends on people what benefits them. Certain products/goods etc are better bought using an EMI option...and certain products should be bought with cash.

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

Zero percent interest means it is not free from interest. You have some hidden cost like processing fees are involved in it. If you calculate that you come to know that you are spending more money than the actual cost.

Not all of us buy each and every thing using EMI option..but on the other hand some do..very well knowing about the hidden cost etc...depends on people what benefits them. Certain products/goods etc are better bought using an EMI option...and certain products should be bought with cash.

Yes, there are options. If EMI is the only option, then one should be prepared for its disadvantages.

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

Zero percent interest means it is not free from interest. You have some hidden cost like processing fees are involved in it. If you calculate that you come to know that you are spending more money than the actual cost.

Not all of us buy each and every thing using EMI option..but on the other hand some do..very well knowing about the hidden cost etc...depends on people what benefits them. Certain products/goods etc are better bought using an EMI option...and certain products should be bought with cash.

Yes, there are options. If EMI is the only option, then one should be prepared for its disadvantages.

Everything has its advantages and disadvantages but weighing all good and bad points the customer should take an informed decision.

But if the customer is lucky..s/he gets a product at zero percent interest rate....mostly during festive season.

Zero percent interest means it is not free from interest. You have some hidden cost like processing fees are involved in it. If you calculate that you come to know that you are spending more money than the actual cost.

Not all of us buy each and every thing using EMI option..but on the other hand some do..very well knowing about the hidden cost etc...depends on people what benefits them. Certain products/goods etc are better bought using an EMI option...and certain products should be bought with cash.

Yes, there are options. If EMI is the only option, then one should be prepared for its disadvantages.

Everything has its advantages and disadvantages but weighing all good and bad points the customer should take an informed decision.

In that case my vote goes to EMI.

Straight out buying creates opportunities for concessions, whereas for buying with EMI it does not provide any such concession from total amount.

If there is cash, there is no necessity of buying through EMII . For a middle class consumer , there is nothing like EMI, despite its disadvantages.

Straight out buying creates opportunities for concessions, whereas for buying with EMI it does not provide any such concession from total amount.

We all know that by opting out for an EMI option we tend to pay more in the end...but for a salaried consumer whose income is limited and it is best to buy and spread out the expenses over a period of time.

Straight out buying creates opportunities for concessions, whereas for buying with EMI it does not provide any such concession from total amount.

We all know that by opting out for an EMI option we tend to pay more in the end...but for a salaried consumer whose income is limited and it is best to buy and spread out the expenses over a period of time.

Here convenience is the prime factor. You cannot have the cake and eat it too