When buying a new mobile phone, individuals often seek the most cost-effective payment method. Many opt to break down the large payment into manageable monthly instalments using personal loans or EMIs. To decide which method to use, it is essential to compare their benefits.

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According to Sidharth V, Chief Risk Officer, KreditBee, personal loans provide broader financial flexibility compared to EMI plans. 

"Unlike EMI options, which are tied directly to your phone purchase, personal loans offer a lump sum that can be used for various expenses. This flexibility is particularly beneficial for those managing multiple financial commitments or planning for future goals. Personal loans extend beyond the immediate purchase, allowing you to manage other financial priorities," Sidharth V said.

Additionally, personal loans often come with competitive interest rates. While some EMI plans may seem cheaper at first glance, personal loans can offer lower rates of interest, especially with promotional offers. Personal loans provide an opportunity to secure better financial terms and can be more economical in the long run.

Another significant advantage of a personal loan is the potential boost to your credit score. Responsible management of a personal loan can positively impact your credit profile, a benefit that EMI plans do not offer. A well-handled personal loan can enhance your credit score for future financial needs.

"Finally, personal loans offer the luxury of time. They give you the freedom to shop around for the best deals on your mobile phone, rather than feeling pressured to make an immediate purchase. Personal loans allow you to make informed decisions without the urgency associated with EMI plans," he added.

While EMI plans are a popular choice, personal loans offer greater flexibility, potential cost savings, and long-term benefits.