The Growing Popularity of EMI Financing for Online Shopping: Is It a Trend Worth Following?
The concept of EMI financing has emerged as the latest trend in online shopping. It provides you with an alternative to conventional payment systems. You may borrow a Personal Loan to purchase something online without paying its cost upfront and distribute it into monthly installments. These modern payment methods efficiently accommodate the diverse circumstances of potential buyers. Let us find more information about the EMI financing option and decide if it is a trend worth following.
An Introduction to EMI Financing
When utilising the EMI financing option, you borrow a Personal Loan to finance the cost of a product you want to purchase. Instead of making a one-time, upfront payment, it divides the total cost into manageable installments spread over several months. Such flexibility appeals to people who prefer a gradual, pocket-friendly approach to pay for the purchase.
The concept of EMI financing is that it caters to your immediate purchase plans without straining your finances. The payment model is particularly if you want to buy expensive things without paying their cost upfront.
How Does EMI Financing Work?
If you want to convert your purchase into easily affordable EMIs, you should borrow from a lending institution.
There might be times when you run low on cash but need to purchase something online. Rather than using your savings to complete the purchase, you can finance it with a loan and distribute its cost into EMIs. loan provider like Hero FinCorp, you can obtain credit and buy your desired products online.
Features of EMI Financing with a Personal Loan
You can choose an EMI payment to divide your product cost into monthly payments through Equated Monthly Installments. Personal Loans include the following key characteristics:
- Personal Loans at Hero FinCorp start from Rs 50,000 and stretch up to Rs 5 Lakh according to the product cost and your ability to repay.
- Your Personal Loan comes without the requirement for any assets as security because they are unsecured. Hero FinCorp,
- Under EMI financing with a Personal Loan, customers gain the freedom to use funds to buy items that range from laptops to smartphones or home appliances.
- The competitive interest rates found on Personal Loans make them stand as one of the methods for cost distribution through EMIs
- You should choose lending institutions that provide a 100% digital process for loans and do not require any office meetings or physical document submission. Online lenders verify your details without delay before approving your loan request.
Pros and Cons of EMI Financing with a Personal Loan
EMI financing with a Personal Loan offers flexibility and convenience when shopping online. However, it comes with its own set of pros and cons. Understanding them is necessary to make informed decisions and manage the expenditure effectively. Here are its detailed pros and cons:
| Pros | Cons |
| Manageable EMIs with flexible repayment tenure | Risk of overspending |
| Competitive interest rates | Additional charges involved |
| No minimum credit score requirement | Promotes impulse buying |
| Unsecured access to funds | Increases debt burden and DTI ratio |
| Helps build credit with regular repayment | Consumes a part of your monthly income |
| Widespread availability | |
| Freedom to buy a better, costlier product | |
| Keeps savings intact |
The Future of EMI Financing Trend
The easy availability of Personal Loans has led to the increased usage of EMI financing for online shopping. Lending companies like Hero FinCorp offer interest rates on Personal Loans,
Paying for online shopping with a Personal Loan makes expensive items more affordable and accessible.
Impact of EMI Financing on Your Credit Score
EMI financing has both negative and positive impacts on your credit score. If used responsibly, it improves your credit score over time. However, late or missed payments can affect your credit score negatively apart from incurring late fees. Additionally, when you apply for a Personal Loan, the lender conducts a hard enquiry on your credit report, temporarily reducing your score. On the other hand, efficient management of EMIs demonstrates responsible credit behaviour, potentially improving your credit score. Understand the loan terms carefully and use a PL Loan EMI calculator to keep the EMIs easily manageable.
Eligibility Criteria to Obtain a Personal Loan
Here are some eligibility conditions you must fulfill to qualify for a Personal Loan at Hero FinCorp:
- Age: 21 to 58 years
- Citizenship: Indians only
- Occupation: Salaried and self-employed
- Minimum Income: Rs 15,000 per month
- Minimum Work Experience: Six months for salaried; Two years for self-employed
Read More: Smart Borrowing: When a Short-Term Loan Can Be a Lifesaver
Steps to Apply for a Personal Loan
When shopping online, do you plan to apply for a Personal Loan for EMI financing? Follow these steps to apply:
- Visit the Hero FinCorp website.
- Go to the Personal Loan section and click on the ‘Apply Now’ button.
- Enter your mobile number and verify the OTP sent to the entered mobile number.
- Choose the loan amount that you need.
- Verify your KYC details data to check income eligibility.
- Click on ‘Submit’ to complete your application.
EMI financing through Personal Loans has revolutionised the way people buy products when shopping online. Use a PL Loan EMI calculator to customize your repayment plan and fulfill your desires without financial worries.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader’s discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.
Pranab Bhandari is an Editor of the Financial Blog “Financebuzz”. Apart from writing informative financial articles for his blog, he is a regular contributor to many national and international publications namely Tweak Your Biz, Growth Rocks ETC.
