Every festival season, companies push harder than ever.
Banks, retailers, and e-commerce platforms design offers that sound irresistible: zero-cost EMIs, no down payments, and instant approvals. From their perspective, it makes complete sense. Festivals are about spending, and they want to capture that emotion. It happens all over the world, and in India the scale during Diwali or Dussehra is unmatched.
What I find fascinating, or rather amusing, is how easily we as consumers fall into the pattern of overspending through debt.
The banners say “celebrate without worry,” but what really happens is that families sign up for twelve months of payments for things they did not truly need. A shiny phone or a bigger television feels like a win in October, but the EMI remains on the statement every month long after the celebrations are over.
This is what I want to talk about in this piece: how the joy of a festival purchase can quietly turn into the burden of long-term debt, and why the comfort of easy EMIs is often a trap dressed as convenience.
Why Festival EMIs Lure People In And The Issues That Follow
The design of these offers is clever. They are meant to feel painless. A television that costs ₹80,000 looks intimidating when you see it as one figure. Break it into ₹6,600 a month for twelve months, and suddenly it feels easy. The same trick works for phones, refrigerators, even holiday packages. Small numbers make big expenses look harmless.
The first issue is overspending.
Once the mind accepts the idea of paying in parts, people start stretching their budgets. A phone that should have cost ₹20,000 becomes ₹35,000 because the higher model only adds “a little more per month.” It does not feel like debt, but it is.
The second issue is stacking EMIs.
Rarely is there just one. A new phone here, a washing machine there, maybe a sofa set bought on Dussehra. Each EMI is small, but together they build into a heavy monthly outflow. What looked affordable in isolation becomes a strain when combined. Families discover that a significant share of their salary is already committed before the month even begins.
The third issue is the loss of discounts and hidden charges.
Many so-called “no-cost EMI” plans remove upfront cash discounts or add small processing fees. On paper the loan looks interest-free, but in practice the consumer ends up paying more than someone who simply bought outright. This hidden cost of a “no-cost EMI” is rarely noticed in the excitement of festival shopping.
The fourth issue is rigidity.
Life is uncertain. Jobs change, emergencies arise, expenses fluctuate. An EMI, however, is fixed. Missing even one payment can bring penalties and hurt your credit score. What felt like a harmless deal now becomes a source of stress.
The last, and perhaps most damaging, issue is regret.
I have observed families making payments for gadgets they no longer even use or care about. The festival mood fades quickly, but the EMI reminder keeps arriving. It is a quiet weight that lingers long after the celebrations are gone.
Who Pushes These EMIs And Why Families Keep Falling Into The Trap
The push starts from the top. Companies know that festivals are the time when Indians are most willing to spend. Banks and retailers structure “festive finance” schemes months in advance. E-commerce platforms like Amazon and Flipkart design their Diwali sales around EMI banners more than the actual product discounts. From their side, it is perfectly rational. Festival offers fuel higher volumes, and EMI-linked purchases increase ticket sizes. An average order that might have been ₹20,000 suddenly jumps to ₹35,000 because the buyer opts for installments. For companies and lenders, this is the real win.
What keeps surprising me is how seamlessly this machinery is packaged for the consumer.
Mobile apps highlight “no-cost EMI” options right next to the buy button, sometimes even pre-selected. Advertisements show families smiling while swiping credit cards with a tagline that says “celebrate without limits.” Influencers casually post stories about unboxing the latest phone “on EMI.” The message is everywhere: spending through debt is not just normal, it is aspirational.
The issues that follow are very real. The most immediate one is financial overhang. Credit card data shows that festival months like October and November consistently see a 30–40% jump in EMI conversions and buy-now-pay-later use. This spike does not vanish with the fireworks; it lingers as monthly payments stretched over a year. By January or February, many families are still paying for gadgets bought in the festive rush.
The second issue is emotional pressure. A father feels guilty that his children deserve a better television because “everyone else has upgraded.” A young professional feels left out when colleagues flaunt their new phones. These are not financial calculations; they are social triggers carefully amplified by marketing. The easy EMI becomes the bridge between desire and affordability, and most people cross it without thinking.
And then there is the silent stress. By March, when school fees or medical expenses arise, the EMIs are still due. Salaried families discover that their discretionary income has shrunk, but the products that caused it no longer bring the same joy. I have seen households cutting back on essentials or dipping into savings simply because their festive spending is locked into rigid monthly installments.
This is why I call it a trap. It does not look dangerous when you are swiping the card in October. It looks celebratory. The real cost appears only later, when the lights are down, the sweets are gone, and the monthly EMI reminders remain.
Please Think Before You Swipe This Festival
I am not against celebrating or spending during festivals. Buying new things for your home, gifting family, or upgrading a device can all be part of the joy. What worries me is how easily these moments are tied to debt, and how silently that debt extends far beyond the celebration itself.
When you sign up for an EMI in October, you are making a commitment that lasts for months. The festival ends in a week, but the payments remain long after. I have seen how this builds into frustration inside families. The excitement of purchase fades quickly, while the obligation to pay never goes away. That gap between joy and repayment is where stress lives.
So here is my request. Before you tap on “no-cost EMI” or say yes to a “zero down payment” offer, pause for a moment. Ask yourself a simple question: Do I truly need this, or is the offer making me feel like I do? If the answer is uncertain, maybe the smarter decision is to step back.
Festivals should be remembered for laughter, gatherings, and lights — not for bills that arrive every month. Celebrate fully, but keep your freedom intact. Do not let debt outlive the joy of the occasion.
Disclaimer
Note: This article relies on data from fund reports, index history, and public disclosures. We have used our own assumptions for analysis and illustrations.
The purpose of this article is to share insights, data points, and thought-provoking perspectives on investing. It is not investment advice. If you wish to act on any investment idea, you are strongly advised to consult a qualified advisor. This article is strictly for educational purposes. The views expressed are personal and do not reflect those of my current or past employers.
Parth Parikh has over a decade of experience in finance and research. He currently heads growth and content strategy at Finsire, where he works on investor education initiatives and products like Loan Against Mutual Funds (LAMF) and financial data solutions for banks and fintechs.