If you’ve been searching for a good financial plan to purchase a home appliance without burning a hole in your pocket, the EMI (Equated Monthly Instalment) can be your saviour. So, what is an EMI?

An Equated Monthly Instalment, also abbreviated as EMI, is a fixed amount of money paid by the borrower to the lender in periodic instalments on a fixed date every month. When you borrow a certain amount of money from a lender to purchase a commodity, you’re given a timeline by the bank to return the money (along with the interest that it accrues) in smaller chunks depending on your income.

An EMI plan is calculated on a few key parameters, such as loan amount, tenure, interest, and loan processing fee (if applicable).

Below are the benefits of purchasing Home Appliances on EMI Finance as opposed to going with other payment plans.

Better Rates of Interest

The issue of interest payable on the loaned amount will come into play when it’s split into EMIs. To benefit a borrower, the rate of interest is usually kept lower than the normal rate of return on a credit card issued by the lender.

Although the rate of interest on the EMI differs from bank-to-bank, it usually falls in the 1.25 % – 1.99 % range. Let’s take a situation where you procure a loan of Rs 20,000 to buy the refrigerator.

If you decide to make the payment with your credit card, which has an interest rate of 3%, the payable amount will escalate to Rs. 23557.

However, an EMI payment with a 2% interest rate will result in a total payable amount of Rs. 22694, which is clearly the better option.

Pre-closure Perks

Let’s assume you have to pay off a loan of Rs. 10,000 over 12 months. The EMI comes up to Rs. 833 per month (interest hasn’t been considered for the sake of simplicity). You decide to repay the loan amount in a single go before the expiration of the tenure. This situation is called ‘pre-closure’, and it allows you to clear your outstanding loan amount well before the due date.

The benefits of such a situation include more savings from the interest attached to the EMI, minimising the EMI amount to be paid, saving up on the loan tenure, and boosting your eligibility to apply for another loan.

What Appliances can I Buy on EMI?

Washing Machine

A must-have commodity for any home is the washing machine. The washing machines of today come with a huge number of features and also with a huge number on the price tag. The easiest way to make sure that you’re buying the best one is to get a washing machine on EMI.

If you’re searching for washing machine that will rid you of dirty laundry, then spend your finances on one of these best-selling washing machines.

Television Set

When you’re looking for the cutting edge in home entertainment, buying a UHD TV or an LED TV on EMI is perhaps the most convenient way to spice up your living room. With a few televisions costing a few lakhs of rupees, it makes sense to buy them on an EMI scheme like the one offered by NBFCs like Bajaj Finserv.

Confused between the dozens of electronics brands out there? Here’s a list of top led TV brands to help solve your TV-buying dilemma.


Another essential appliance for a house is the refrigerator; you just can’t do without it. As refrigerators grow taller and wider, so do the prices. But there’s no need to lose your cool. You can always get a refrigerator on EMI! Financial institutions like Bajaj Finserv provides loans with uncomplicated EMI payment methods for consumer durables which do not strain your finances.

Looking for the best refrigerator for your home? Here are Five Top Selling side-by-side Refrigerators that you might want to buy during this festive season.

How do I Buy Appliances on EMI?

So here’s what you have to do: consider all your expenses, evaluate the money you’d have to spend on them, put aside some money for emergencies, and add these amounts up. The difference between this sum and your monthly income will tell you the EMI amount you can conveniently handle.

Once you’ve done this, find the right product, find the right service provider and sign the deal to purchase your appliance on EMI. Instead of availing a personal loan, these EMI schemes have extremely low interest rates and minimal paperwork that make owning a high-quality home appliance exponentially convenient. Let’s take a look at how advantageous these EMI schemes are.

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