2 min read
25 May 2021

In 2013, a leading financial newspaper quoted India as an EMI nation, noting the wealth of items and services available on EMI. In the years since, consumer sentiment has been aptly met by an increase in EMI financing schemes. For instance, you can shop for not just a few, but over 1 million products through the Bajaj Finserv EMI Network and what’s more, make your purchase via a no cost EMI deal. Bajaj Finserv now brings to you another offering in its suite- EMI reduction offer. It is available exclusively to EMI Network customers and manage your multiple EMIs.

To understand more about this offer, take a look at the main features and benefits of the EMI reduction offer.

Debt consolidation: Pay for all purchases with a single EMI

The EMI Network card gives you access to financing of up to Rs. 3 lakh, which you can use to purchase electronics, apparel, appliances and any other items you desire. Each time you shop on the EMI Network online or at a partner store offline, you make a fresh transaction and can avail a customised EMI financing plan for the same. For instance, you may repay the cost of an air cooler over 4 months, a laptop over 6 months, and a double door fridge over 15 months.

This leaves you with several EMIs to manage and different payment dates to keep track of as you may probably not buy everything on the same day. The EMI reduction offer helps you simplify your EMI payments by allowing you to roll into one new consumer loan all your existing debts.

Tenor extension: Refinance your loan over a greater number of months

The second benefit that the EMI reduction offer brings to you is the ability to refinance your consumer loan debt over an extended tenor. When availing this scheme, you can opt to repay your loan up to 60 months tenure and thereby, ease the strain on your monthly budget. As a result of the longer tenor, your monthly debt payments reduce in value as the total cost of your products is now split over a longer span of time. This makes repayment easy.

EMI reduction: Lower your monthly debt outgo by up to 70%

The third benefit, a consequence of the tenor extension, is the reduction of your EMIs. Typically, you incur a fixed interest charge for the convenience of repaying your loan at a more relaxed pace. Nevertheless, your EMI outgo can reduce by up to 70% depending on the particulars of your transactions.

Understand how EMI reduction works with a practical example.

Consider that you bought a flagship smartphone worth Rs. 20,000 from the EMI Network. At present, you need to repay this over a 5-month tenor. Here’s what your existing EMI plan looks like.

Existing loan amount Existing tenor Existing EMI
Rs. 20,000 5 months Rs. 4,000

Now consider that you opt to double the length of the tenor with the EMI reduction offer and repay your loan over a span of 10 months. Here’s what the new loan looks like.

Loan amount New tenor Total fixed interest New EMI (inclusive of interest) Reduction in EMI
Rs. 20,000 10 months Rs. 1,500 Rs. 2,150 46%

Ease of application: Avail the scheme without additional documentation

The fourth benefit of the EMI reduction offer is that, as an existing customer, you can avail it without requiring to submit any additional documentation whatsoever. This makes application convenient and allows you to take quick financial decisions. To get started with this offer, all you need to do is access it online.

By doing so, you ensure that your monthly debt outgo is in check and that you can repay your consumer loans comfortably.

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