If you are coveting the brand new iPhone X, you have various options of buying that hot new gadget without hurting your bank balance.
By Adhil Shetty
The much-awaited iPhone X was launched last week at a price of Rs 1,02,000, making it the most expensive phone available in the market. The attraction of having an iPhone is irresistible and everyone wants one. If you are also coveting that brand new iPhone, don’t wait. You have various options of buying that hot new gadget without hurting your bank balance.
Let us take a look at ways through which you can finance your new iPhone:
Go For Consumer Finance
Consumer finance options are offered by many financial institutions, which can make possessing the new iPhone a reality for you. There is, usually, no processing fee charged on the finance and you don’t even have to make any down-payment. iPhone dealers have tie-ups with these consumer finance companies. You can, thus, find a financing option right at the mobile store. The interest rates are a tad bit high as these financing schemes are similar to unsecured loans. You are required to pay the cost of the phone and the interest component through EMIs. The repayment tenure is flexible and is, generally, available for 5 years.
If consumer finance does not appeal to you, you always have the option of taking a personal loan. Personal loans are unsecured loans which are easily available. Being unsecured, they do not require any collateral security or a guarantor. You can get a loan easily based on your eligibility. Repayment of the loan is done through EMIs and you get tenure of up to 5 years for repaying the loan.
If you have a credit card which allows you EMI facilities you can use that too. Many credit cards allow you to convert your big-ticket purchases into affordable EMIs. Since an iPhone is a big-ticket purchase, you can swipe your credit card for the purchase and convert the amount into EMIs. These EMIs are also unsecured as they do not involve pledging of any security or the guarantee of a guarantor. Just swipe your credit card and request your credit card issuer to turn the transaction into EMIs payable for a specified period.
Save, invest and build up a corpus
Whether you choose consumer finance, go for a personal loan or use your credit card’s EMI facilities, you would be paying substantial interest on the credit taken. The interest is high because all these sources of finance are unsecured sources where the lenders bear a heavy risk of default on your part. If you want to save on the interest payments, save and invest. Save a specified amount of money every month and invest it in good return-bearing instruments, like equity SIPs or a recurring deposit scheme. After a few months or a year when you have saved enough, use your savings to buy the phone. You wouldn’t have to look for external financing options, save on the interest payments and also generate a return on your savings.
Finally, you can generate some cash by offloading old electronic items, such as your existing cellphone.
(The author is CEO, Bankbazaar.com)