One of the great benefits of belonging to a generation in which cashless transactions pervade durable consumer purchases is that you can buy an expensive product now and pay for it later in small instalments. The ability to shop via EMIs is advantageous to everybody, but especially those who need to make multiple purchases all at once. For instance, you may require to buy a washing machine, fridge and some kitchenware for your new house or need to buy a television, soundbar and a home theatre system to revamp your living room.
However, if you are not careful with EMI financing, your instalments can begin to influence your monthly budget. In fact, according to a 2019 survey conducted by ET wealth, around 15% of consumers had an EMI debt amounting to over half of their income. One way of tackling such a situation and reducing the strain on your finances is by opting for Bajaj Finserv EMI reduction offer.
Available to Bajaj Finserv EMI network customers, this offer helps you make multiple purchases conveniently. Read on to know more.
Bring together all your consumer loans into one
Consider the above example in which you need to buy several appliances. When you shop for these on the EMI network or at a partner store, each transaction utilises a portion of the finances available via an EMI Network card and counts as a separate consumer loan. Each of these has differing EMI amounts and repayment tenors. By opting for the EMI reduction offer, the first benefit you get is that you can consolidate all your prevailing loans into one and service a single new loan over an extended tenor.
Additional Read: Repay all your outstanding debt with online personal loan
Here’s how it can help you reduce your monthly debt payments.
Refinance your new loan over an extended tenor
Bajaj Finserv allows you to repay this new loan over an extended tenor ranging from 1 to 60 months. So, if you need to pay for your washing machine in 12 instalments and for your fridge in 9 instalments, opting for the EMI reduction offer gives you some financial respite as you can space out both these payments over a maximum of 18 months.
Reduce your EMI outgo by up to 70%
Financing a purchase over a greater number of months reduces the value of each EMI. In fact, with the offer you lessen your monthly burden by up to 70% and thereby make shopping for multiple products at once possible.
Take a look at how this scheme works in practice.
Consider that you purchased a TV worth Rs. 20,000 from the EMI network and are at present financing it in five instalments. This is what your EMI structure would look like.
| Existing loan amount | Existing tenor | Existing EMI |
|---|---|---|
| Rs. 20,000 | 5 months | Rs. 4,000 |
Now, consider that you opt for an EMI reduction offer and finance over a longer, 10-month tenor. Here is the revised EMI structure, inclusive of fixed interest charges.
| 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% |
Now that you’ve seen how you can make multiple purchases conveniently with the EMI reduction offer, avail of the facility when your debt payments become too heavy for your monthly income. What makes this feature extensively accessible is that as an EMI network customer, you need not submit any additional documentation to benefit from it. Apply for it online and enjoy the luxury of reduced EMI payments.
Additional Read: How you can use a personal loan calculator
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