Is it a good idea to buy jewellery using EMI?

EMI or equated monthly installment is a purchasing scheme to enable more people in buying things. In this program, a lender allows a borrower to pay back a loan in installments, which are smaller in value than the full amount. Most people earn monthly salaries and it is just easier to make smaller payments regularly each month. These schemes allow buyers or borrowers to get something quickly while making payments over time and using the bought product. Users no longer have to wait long to save up enough to make an expensive purchase. Jewellery can also be bought using EMI options. Sellers or lenders can allow customers to make a purchase using EMI. Here’s why using EMI for jewellery purchase may be a good idea.

  • When you are a salaried worker, having an EMI option to buy a piece of jewellery that you liked, can be helpful. When one can buy a home or a car on equated monthly installments, it only makes sense to buy jewellery through EMI.
  • The jewellery piece or set that you want or like may be expensive. The price depends on the base gold prices which fluctuate depending on market factors. And it is possible that the time you see a jewellery piece that you really love, the prices are super high. It may be a single piece and you don’t want it to be sold out. Then an EMI scheme can be helpful.
  • Now one may think that saving some money and then buying jewellery, is a more sensible option. But there may be situations when you need to get something immediately. For example, you want to propose to your girlfriend and get engaged asap. However, your budget doesn’t allow you to get the best ring, but you want to give her the best like hidden halo engagement rings. You can go to a jeweller that has an EMI option and then get the best ring for your fiancée.
  • EMIs also give a chance to people who don’t earn a lot, to buy jewellery without having to sacrifice an arm and a leg.

EMIs do have their benefits, provided one understands what this is all about. EMI isn’t an easy peasy option to get jewellery. Of course, one does get a respite in terms of bearing a huge cost all at once. But here are a few things to understand about an EMI.

If you are going to use the EMI option to buy jewellery, you must understand that in many cases the arrangement is like a lender-borrower situation. There are two options that jewellers may extend under an EMI scheme. In one, they may offer 0% interest in EMIs. This means that if you buy jewellery which costs a certain amount, the jeweller will sell the piece on an EMI scheme which won’t have any interest on the unpaid amount. But this is very rare. In most cases, the sellers will act as the lender and charge interest on the amount that will be paid over time.

The interest is what you need to be careful about. Because this increases the final amount that you will end up paying. It is like paying a higher price for the same piece of jewellery. This is why some people look for less expensive options such as lab grown diamonds UK. This way you get a good piece of jewellery but also at a lower price.

EMIs can be beneficial provided you make an informed decision and are fully aware of what the scheme is.

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