We are in the thick of the festive season and people are looking to make optimum use of various schemes and offers being given by retailers. Here are some smart ways to maximise your shopping experience.

Zero-interest loans

Some non-banking financial companies (NBFCs) offer 0% interest loans on consumer durables, which means that the borrower will not be charged any interest on the loan. However, the loan will carry a processing fee. Also, you may not get discounts offered to consumers who do not opt

for the scheme.

Let us look at how this works. Say, Ram opts to buy a smartphone for R30,000 from a retail store. The store has a tie-up with XYZ NBFC, which offers 0% loans to consumers who purchase a certain product from the store. Ram opts for the scheme. However, the store offers a discount of 10% to those who pay cash up-front. As Ram has opted for the 0% interest scheme, he does not get the discount. The loan comes at a processing fee of 2%, or a minimum amount of R500. Ram ends up paying R30,000 over six months, at a monthly instalment of R5,000 each. In addition, he pays R600 as processing fee.

These schemes are in huge demand during festival seasons. They are not only an easy means to finance your big-ticket purchases, but can also be availed of easily, with minimal paperwork. However, you must take a close look at the fine print. In the above example, Ram thinks he has got a good deal, as he is paying only R600 over and above the cost of the product. However, he has lost out on a discount of R3,000.

Encash credit card points

Another smart way of shopping during the festive season is to use credit card points that you have accumulated through the year. This means you can buy the same product by spending less cash by using your points instead. You can also consider using third-party point websites like ?Payback?, which help you redeem these points. However, remember that not all stores offer the facility of encashing credit card points.

Also, do the math on how many points you can convert and how much you will have to pay from your pocket.

Encash discount vouchers

Priya usually purchased household items from a superstore in the neighbourhood. Being a regular customer, she was given discount vouchers valid till the month-end. During the festive season, Priya planned to buy a laptop. She checked various sources and found that her usual superstore offered her the best price. She also realised that she could use discount vouchers that she had collected against this purchase, thus reducing the cost of the laptop further. Encashing such discount vouchers can be very beneficial, as there are no hidden costs involved. However, keep a watch on validity period of the vouchers.

Coupons

There are many websites that let you purchase coupons online. Sometimes, you will need to pay a small amount to buy the coupon. In other cases, these are for free? just click on ?Activate Deal? button, which will take you to the third-party website from where you want to make your purchase. As you entered the vendor website through the coupon website, the discount on your purchases will automatically be applied at the payment page. This can get you a very attractive final price on your product.

It?s important to keep a few things in mind. First, only use verified authentic coupon websites. Next, study the deal carefully. Many times, there are conditions and stipulations attached to offers. Third, make sure the discount has been applied before you make the payment. The vendor website will not be answerable if this is not done, so extra care should be exercised.

Use of cash-back offers

Credit cards and websites give cash-back offers for purchases. Sheela, for example, planned to buy a microwave during the festival season, which was five months away. She decided to use the cash accumulated on her card from the ?cash-back? feature. For the next five months, she made all payments on the particular card that gave her 5% cash-back on her purchases. At the end of five months, she had accumulated enough cash to purchase a microwave.

Choosing such shopping options requires planning. One needs to keep track of the cash so accumulated to utilise it in the most effective manner.

Points to remember

Some NBFCs offer 0% interest loans on consumer durables. However, remember, the loan will carry a processing fee. Also, you may not get discounts offered to consumers who

do not opt for the scheme

Another smart way of shopping during the festive season is to use credit card points that you have accumulated through the year.

This means you can buy the same product by spending less cash by using your points instead. However, not all stores offer the facility of encashing credit card points

Encashing discount vouchers can be very beneficial, as there are no hidden costs involved. However, keep a watch on their validity period

There are many websites that let you purchase coupons online. Sometimes, you will need to pay a small amount to buy the coupon. In other cases, these are for free? just click on ?Activate Deal? button, which will take you to the third-party website from where you want to make your purchase. As you entered the vendor website through the coupon website, the discount on your purchases will automatically be applied at the payment page. This can get you a very attractive final price on your product. Only use verified authentic coupon websites. Study the deal carefully. Many times, there are conditions and stipulations attached to offers

The writer is CEO, BankBazaar.com