{"id":5655,"date":"2025-08-16T14:27:01","date_gmt":"2025-08-16T14:27:01","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/16\/is-buying-on-emi-a-good-idea-or-a-debt-trap-heres-what-experts-say-business-news\/"},"modified":"2025-08-16T14:27:01","modified_gmt":"2025-08-16T14:27:01","slug":"is-buying-on-emi-a-good-idea-or-a-debt-trap-heres-what-experts-say-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/16\/is-buying-on-emi-a-good-idea-or-a-debt-trap-heres-what-experts-say-business-news\/","title":{"rendered":"Is Buying On EMI A Good Idea Or A Debt Trap? Here\u2019s What Experts Say | Business News"},"content":{"rendered":"


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EMIs may offer easy purchases, but without planning, they can trap you in debt. Know when EMI helps, and when it silently drains your savings and peace of mind<\/h2>\n
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\"EMI<\/p>\n

EMI can be a helpful tool if used wisely, such as for emergencies, essential home appliances, or investment-driven purchases like education or housing. (News18)<\/p>\n<\/figure>\n

We\u2019re all familiar with the word EMI \u2014 Equated Monthly Instalments. In today\u2019s fast-paced world, it\u2019s become incredibly easy to buy just about anything through EMI. Be it a phone, flight tickets, or even a refrigerator, if it\u2019s available on EMI, chances are someone\u2019s already swiping for it. But is it really a smart choice?<\/p>\n

What Is EMI And Why Is It So Popular?<\/h2>\n

EMI allows consumers to purchase items and pay for them in smaller monthly amounts, usually with added interest. It offers convenience and flexibility, making expensive items seem more affordable.<\/p>\n

You no longer need a lump sum; a few clicks and a signature are enough to own something today and pay for it tomorrow.<\/p>\n

The Hidden Cost Of Convenience<\/h2>\n

While EMI may seem like a blessing, without careful planning, it could lead you straight into debt. You end up paying more than the product\u2019s actual price because of interest.<\/p>\n

Over time, these little purchases can snowball into a significant financial burden.<\/p>\n

Is EMI Worth It? What The Experts Say<\/h2>\n

Finance expert Tapas Chakraborty warns against blindly relying on EMI schemes. In a viral post on LinkedIn, he described EMI as \u201cthe biggest trap for Indians”, even more dangerous than inflation or tax. The simple formula? \u201cEarn, borrow, repay, repeat. No savings, swipe again.”<\/p>\n

What was once meant to ease financial pressure is now becoming a lifestyle choice, and not necessarily a healthy one.<\/p>\n

The EMI Trap And India\u2019s Debt Problem<\/h2>\n

According to Tapas Chakraborty, household debt in India has reached 42% of the GDP. Credit cards, personal loans, and \u2018Buy Now, Pay Later\u2019 schemes make up a whopping 32% of this debt.<\/p>\n

To put it in perspective, 70% of iPhones sold in India are bought on EMI, and 3 out of every 5 people have more than three active loans.<\/p>\n

How To Calculate EMI?<\/h2>\n

If you\u2019re still considering buying on EMI, it\u2019s vital to understand how it\u2019s calculated. Here\u2019s the standard formula:<\/p>\n

EMI = [P \u00d7 R \u00d7 (1+R)^N] \/ [(1+R)^N \u2013 1]<\/p>\n

Where:<\/p>\n

P = Principal amount<\/p>\n

R = Monthly interest rate (Annual rate \u00f7 12)<\/p>\n

N = Loan tenure in months<\/p>\n

Use this formula, or an online EMI calculator, to understand exactly how much you\u2019ll end up paying.<\/p>\n

When EMI Makes Sense (And When It Doesn\u2019t)<\/h2>\n

EMI can be a helpful tool if used wisely, such as for emergencies, essential home appliances, or investment-driven purchases like education or housing.<\/p>\n

But buying non-essential luxury items or racking up multiple EMIs without budgeting can quickly become unsustainable.<\/p>\n

Final Word: Don\u2019t Let EMI Dictate Your Finances<\/h2>\n

Next time you see \u2018Easy EMI Available\u2019, pause and ask: Do I really need this right now? Being debt-free is the real freedom.<\/p>\n

Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Click here<\/a> to add News18 as your preferred news source on Google. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n

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News<\/a> business<\/a> Is Buying On EMI A Good Idea Or A Debt Trap? Here\u2019s What Experts Say<\/span><\/div>\n
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Last Updated:August 16, 2025, 12:54 IST EMIs may offer easy purchases, but without planning, they can trap you in debt. Know when EMI helps, and when it silently drains your savings and peace of mind EMI can be a helpful tool if used wisely, such as for emergencies, essential home appliances, or investment-driven purchases like…<\/p>\n","protected":false},"author":1,"featured_media":5656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5655"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5655\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/5656"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}