No-Cost EMI Ends? See how much cheaper smartphones could become with this simple price calculation.
No-Cost EMI Ends? See how much cheaper smartphones could become with this simple price calculation.
No-Cost EMI Smartphone Prices: Amidst demands to discontinue No-Cost EMI schemes, there is growing speculation about a potential drop in smartphone prices. However, companies have not yet confirmed any changes.
No-Cost EMI Smartphone Prices: If you are planning to buy a new smartphone, you might see a significant change in its price in the near future. The All India Mobile Retailers Association (AIMRA) has demanded that major companies like Samsung, Apple, Xiaomi, Vivo, Oppo, and Realme discontinue their No-Cost EMI schemes. Retailers argue that this scheme forces every customer to pay a higher price, regardless of whether they buy the phone on EMI or pay the full amount upfront. The question now is: if this scheme is actually discontinued, how much cheaper could phones become?
Why has the demand to stop No-Cost EMI been raised?
According to AIMRA, the cost of a 24-month No-Cost EMI plan amounts to approximately 17% to 19% of the phone's price for the companies. Retailers argue that smartphone companies cover the interest charged by banks and finance companies for No-Cost EMI; since the cost of these schemes is already factored into the phone's price, all customers end up paying more.
To put it simply: suppose a smartphone currently costs ₹30,000, and the cost of the No-Cost EMI—roughly 18% or ₹5,400—is already included in that figure. If companies were to completely remove this scheme and pass that amount back to customers as a price discount, the price of that same phone could drop to around ₹24,600.
What happens next, and what should customers understand?
For now, the entire matter remains at the stage of demands and discussions. Smartphone companies have not yet confirmed any plans to discontinue No-Cost EMI or cut prices, so it would be premature to expect an immediate drop in prices. Additionally, the RBI has recently tightened regulations regarding EMIs; for instance, it is now mandatory to clearly disclose loan-related details in a 'Key Facts Statement' so that customers can become aware of any hidden charges upfront.
