Buying an iPhone has become easier for many consumers with the availability of EMI payment options. Instead of paying the entire amount at once, buyers can spread the cost over several months through monthly instalments. No-Cost EMI offers can make the purchase appear even more affordable.
However, buyers should not assume that No-Cost EMI means the purchase will have absolutely no additional charges. Processing fees, GST and the impact on the available credit card limit are some important factors to consider before choosing an EMI option.
Does No-Cost EMI Reduce the iPhone Price?
Suppose an iPhone 18 Pro (256GB) is priced at ₹1,64,900. Under certain bank card EMI offers, the effective price could come down to ₹1,57,900, while a six-month No-Cost EMI plan may require monthly payments of around ₹26,316.
However, choosing EMI does not simply reduce the original price of the smartphone. The main benefit is that the payment is divided into smaller instalments instead of requiring the buyer to pay the full amount upfront.
Therefore, customers should look at the complete payment structure rather than judging the deal only by the monthly EMI amount.
No-Cost EMI Can Still Include Additional Charges
The term “No-Cost EMI” can sometimes create the impression that there will be no extra expenses. In practice, banks may charge a processing fee for converting a transaction into EMI. This fee typically ranges from ₹199 to ₹500.
GST can also apply to the interest component. In the given example, 18% GST is applicable to the interest component.
As a result, the EMI amount promoted in an offer may not represent the complete cost of the transaction. Buyers should check the bank’s EMI terms carefully and confirm the total amount payable, including processing fees, GST and any other applicable charges.
How EMI Affects Your Credit Card Limit
Purchasing an expensive smartphone through a credit card can also reduce the available credit limit. For example, if a credit card has a limit of ₹1.5 lakh and a purchase worth ₹90,000 is made, the available limit would be reduced to ₹60,000.
This is another factor buyers should consider before using a credit card for an iPhone purchase, particularly when the card is also needed for other expenses.
Check the Total Cost Before Buying
Before selecting an iPhone No-Cost EMI offer, buyers should consider more than just the monthly instalment. The phone’s price, applicable bank offer, processing fee, GST and complete EMI terms should all be checked together.
Understanding the total amount payable in advance can help buyers make a more informed decision and avoid unexpected costs later.
Disclaimer
The information provided in this article is for general informational purposes only. EMI terms, processing fees, GST applicability, bank offers and other charges may vary depending on the bank, card, retailer and offer. Buyers should check the latest terms and conditions with the concerned bank or seller before making a purchase.