Smartphones on EMI are becoming an increasingly popular way to upgrade to the latest technology without straining your monthly budget. With new flagship models launching each year, equipped with advanced cameras, powerful processors, and AI-driven features, the desire to upgrade is natural. But when it comes to financing your new smartphone in 2025, a key question remains: Should you choose an EMI plan or pay with your credit card?
Let’s explore the difference between shopping on EMI and using a credit card, and figure out which one makes more sense for today’s tech-savvy buyers.
Understanding EMIs and Credit Card Purchases
When you shop on EMI, you break down your total purchase cost into manageable monthly instalments over a fixed tenure. This is typically achieved through consumer durable loans or no-cost EMI plans offered by retailers or financing institutions.
Conversely, credit cards enable you to buy now and pay later, either in full or in part, with interest. Some cards also provide EMI conversion options, but these usually involve interest rates and processing fees unless explicitly offered as no-cost EMIs.
Why More Buyers Are Choosing Smartphones on EMI
Here are some reasons why shop on EMI options is preferred by many:
- No-Cost EMI Offers: Many financing providers provide smartphones on EMI at no extra charge, meaning you pay exactly the price of the phone, divided over several months.
- Flexible Tenure Options: You can select from 3 months to 24 months, based on your comfort and monthly budget.
- No Credit Card Required: You do not need to own a credit card to access this facility. Leading NBFCs offer EMI financing through a simple approval process.
- Minimal Documentation: Applying for smartphones on EMI plan is quick and hassle-free, especially when using a dedicated shopping app with integrated finance features.
Drawbacks of Using a Credit Card
Although credit cards offer convenience, they come with some caveats:
- High Interest Rates: Unless you convert your purchase into EMIs upfront, credit card balances attract high interest rates.
- Hidden Charges: EMI conversions on credit cards may incur processing fees, foreclosure charges, or penalties for late payments.
- Impact on Credit Limit: A big-ticket purchase, such as a smartphone, can significantly reduce your available credit limit, potentially affecting your credit score.
EMI – A Smarter Choice for Budget Management
Using EMI plans to purchase smartphones enables you to organise your expenses more systematically. You can choose a repayment period that matches your income pattern and prepay if your budget permits. It provides transparency, predictability, and affordability.
Moreover, some lenders allow you to shop on EMI with zero down payment and instant approvals, making the process even more seamless. This is especially helpful for students, freelancers, or those without a credit card.
Which One Should You Choose in 2025?
If you want flexibility, low financial stress, and zero-interest options, shop on EMI through a trusted NBFC-backed partner is often the better choice. It gives you the freedom to buy the latest phone without burning a hole in your pocket and without the dependency on a credit card.
Credit card EMI, while convenient, is better suited for those who already have a good credit card and can manage repayments responsibly.
Conclusion
Buying a smartphone in 2025 is all about clever financing. With technology developing rapidly, people are upgrading devices every 1–2 years. Choosing smartphones on EMI through financing platforms like Bajaj Finserv can give you a competitive edge, offering No Cost EMI, quick approvals, and the convenience of shopping on EMI without a credit card. It’s fast, secure, and designed to match the lifestyles of modern consumers.
Using the Bajaj Finserv EMI Network Card, you can shop for over a million products at more than 1.5 lakh partner stores, making smartphone buying more convenient and budget-friendly.
