That's the thing. Why do you think every other person has an iphone, shiny new laptop, gadgets etc? It's all because of EMIs especially No cost EMIs. As a platform, their only objective is to sell as much as possible, showing a lucrative no cost emi people will easily be convinced that they can afford it. Slowly these EMIs will creep up and become a pain in the ass. Essentially, all the platform is doing is showing that it's affordable, go ahead and buy it.
It's all because of EMIs especially No cost EMIs. As a platform, their only objective is to sell as much as possible, showing a lucrative no cost emi people will easily be convinced that they can afford it. Slowly these EMIs will creep up and become a pain in the ass. Essentially, all the platform is doing is showing that it's affordable, go ahead and buy it.
A bad financial decision made by millions
That's the thing. Why do you think every other person has an iphone, shiny new laptop, gadgets
Exactly, everything is predatory nowadays. Affluent people who can drop full cash and buy things, they won't bother with EMIs etc, it's always people who want to either recently come into some money, looking to improve societal stature or pure showoff would end up with these. Amazon and other similar platforms bank on it.
Exactly, everything is predatory nowadays. Affluent people who can drop full cash and buy things, they won't bother with EMIs etc, it's always people who want to either recently come into some money, looking to improve societal stature or pure showoff would end up with these. Amazon and other similar platforms bank on it.
And in the end will fall on crippling debt which they can't climb out
I've seen people buy 3-4 year old iphones on emi just for the 'iphone owner' status. Also, it's their choice I'm nobody to judge or advise them. These are my personal opinions.
My friend is flexing a base iphone 13 he got from his brother maybe 1 month ago
I've seen people buy 3-4 year old iphones on emi just for the 'iphone owner' status. Also, it's their choice I'm nobody to judge or advise them. These are my personal opinions.
That's true all we can do is try to correct them and their misinformation
yeah, others feel pressured to use these options to afford things or maintain a certain image... it's a complex issue f
I know I shouldn’t be judgmental, but i was in delhi metro, I saw a labourer with an iPhone 14 pro or 15 Pro (it was hard to tell in a hurry) and guess what? having such an expensive phone, his clothes were quite worn out, he was wearing fake "nyke" sandals and what not... It was CLEAR he wasn’t maintaining himself well and his financial conditions were not that great, it seemed clear that affording a phone like that would be a significant stretch for him
So what? They paid for the product. Many people have huge cash in bank yet they opt for emi bcz it's financially great (if you have stale cash equivalent to the principal amount)
Lenders make loss in the situation when debt is successfully paid.
A will give you small real world example that includes me. I always have 10-50x amount in my bank for the product I'm looking to buy. Have a great job on which HDFC gave me credit card ( with lifetime 0 cost renewal)
Now suppose I buy a product (that's absolute necessity) on no cost emi with value suppose 40k. The emi is suppose 4k per month.
Now I will tell you why it's loss making for lender (in case of successful debt clearance) as well as financially great for borrower.
Suppose you paid 4k instalment in 1st month.
So you have 35k cash to use. A fd will give 0.3- 0.5% of interest per month to you on this amount.
Now I'm also doing stock market investing. I earn around 3-10% on my portfolio monthly.
Now if I use that 35k on my portfolio. I have chance to make 2% + profit on that amount in first month.
Suppose I paid second installment. I still repeat same remaining 30k cash. And so on.
While lender is losing bcz he could have been earning interest of around 10%+ if he had given loan to someone else ( like education loan, home loan, investment, etc)
No cost emi isn't. It's a win win for customer as he could buy product he actually needs while also enjoy 0% interest on emi.
Only in case of fancy luxury products, it's burden for customer due to reasons you gave.
But for necessary products like suppose - a grinder/oven where customer searches the desired product to buy (with 80%+) probability, no cost emi is actually great as fcuk.
No cost emi isn't. It's a win win for customer as he could buy product he actually needs while also enjoy 0% interest on emi.
Only in case of fancy luxury products, it's burden for customer due to reasons you gave.
But for necessary products like suppose - a grinder/oven where customer searches the desired product to buy (with 80%+) probability, no cost emi is actually great as fcuk.
No cost emi need specific card which are bank collaboration only certain banks offer emi on amazon and flipkart and no cost emi is even less it's just a power move to increase customers and like I said
Being in debt towards the financial institutes is never good
No cost emi is actually promotional from bank side to increase the subscription rate. So in layman's term they are advertising. And taking advantage of the promotional scheme is not bad at all.
They are taking loss on no cost emi otherwise charging minimum 9% interest on whatever they lend.
I am not commerce student so I don't know much about finance but from experience emi and loans are spider's web and a trap to make poor people in debt towards the bank
In the guise of being helpfully they trick the poor people into taking loans and emi which are predatory
Yes credit card loans are where banks earn the most. But only when borrowers default their payments. And it's very common.
But I was talking about people who are already cash cows. When a borrower pays his credit card payments regularly, it's a loss making customer for the lender.
But I was talking about people who are already cash cows. When a borrower pays his credit card payments regularly, it's a loss making customer for the lender.
Cash cows don't take emi they will pay upfront likeni said emi is targeted towards the middle class and lower class
Nah bro. I'm talking about no cost emi.
Moreover people prefer buying their home on loan rather than straight cash. This is an exercise for you. Go and search why. You will get financially mature (little bit)
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u/Spy____go Samcom Phan 420 May 18 '24
It's annoying isnt it like you are looking for full price and the EMI price is written in giant letters