Independence Day sales are back, and with a bang! This is good news for consumers, especially those who look for mega deals and discounts around such times every year. This year too in a bid to cash in on the Independence Day fervour, lots of e-commerce and retail majors – including Snapdeal, Flipkart, Amazon India, Paytm Mall, Big Bazaar – have come out with their annual Freedom Sales and also rolled our mega offers to woo buyers. The deals include hefty discounts and cashback offers on a wide range of products ranging from mobile phones to laptops and from FMCG products to TVs and appliances. Some banks, in a tip-up with the e-commerce majors, are also offering additional cashbacks on their credit and debit cards. Although some of these sales have already closed, others are still on and will be on till 15th August.

For instance, Snapdeal’s ‘Deals of India Sale’ will be on till 15th August, 2018. It is giving up to 70% off on Mens Fashion Wear and up to 80% off on Womens Fashion Wear. Similarly, up to 70% off on home and kitchen products, up to 75% off on electronics, and up to 80% off on refurbished mobiles. You can also get 10% instant discount using ICICI Bank credit and debit cards.

Similarly, electronic shopping store Reliance Digital’s Digital India Sale will run till 15th August. You will get hefty discounts on lots of electronic products, apart from 10% cashback on leading cards, including the cards of HDFC Bank, ICICI Bank, Citi, Kotak and American Express.

Retail major Big Bazaar’s 5-day Maha Bachat shopping mela will also run till 15th August. Here apart from getting massive discounts and good deals on lots of products, you can get up to Rs 1200 cashback if you shop for Rs 3000 and more.

Similarly, Reliance Fresh and Reliance Smart have come out with their Full Paisa Vasool Sale, which will go till 15th August. Samsung has also come out with its offers whereby you can get up to 25% instant cashback, up to 10% additional cashback, and 1 EMI free.

Thus, there are offers galore and at some places you can get good deals also. However, before buying any product or going for any offer, you should also try to read the terms and conditions carefully because there may be something more than what meets your eye!

Cashback offers and EMI schemes

Financial experts say that usually discount offers are fine, but it is wise to be careful especially with cashback offers. That is because many a times cashback offers come along with some terms and conditions, which must be understood first before going for the deal.

In Samsung’s case, for instance, you will be able to get 10% cashback on select products only, that too only on HDFC Bank credit/debit card EMI, credit card and consumer durable loans, and on ICICI Bank credit card EMI transactions. You will get only 5% cashback on other products with minimum transaction of Rs 20,000 done under Brand EMI option. Similarly, maximum cashback is of Rs 6,000 in case of 10% cashback products and Rs 3,000 in case of 5% cashback products.

In Big Bazaar’s case, 10% additional discount offer is applicable on SBI debit card on shopping of Rs 3000 or above in one transaction. You are allowed a maximum discount of Rs 400 per transaction per card. Moreover, cashback of Rs 600 is applicable on shopping of Rs 3000 – Rs 24,999. Customer will receive Rs 600 cash in FuturePay Wallet. Rs 600 cash will be credited as Rs 100 for 6 months starting 1st Sep’18 till Feb’19. On shopping of Rs 25,000 or above, the customer will receive Rs 2100 as cash in Future Pay’s Wallet. This amount will be credited as Rs 350 for 6 months starting 1st Sep’18 till Feb’19. You also need to know that this offer is not valid on the purchase of desktops, laptops and mobiles.

Thus, while cashback offers may be a good way to maximize your discounts and get a part of your spend credited in your account instantly, you should be careful while utilizing such options. Also, before going for such offers, you also need to compare them with some competitive offers.

So far as EMI options are concerned, you should also try to understand how your purchase will be converted into EMIs and how much you will have to pay finally.

Aditya Kumar, Founder & CEO, Qbera.com, says, “When a customer makes a purchase on an e-commerce site through his/her credit card, the entire amount for the purchase is charged on the credit card, even if the customer opts for an EMI option. After 3-6 days, the bank will convert the transaction into EMIs as chosen while making the purchase. Customers will then have to pay the EMI amount in the subsequent billing cycle. The transaction amount is charged in full, and the credit limit is accordingly reduced.”

Most of the e-com retailers offer No Cost EMI offers to the customers during festive sales. Such schemes evidently reduce the burden on the customer, allowing him to make convenient and flexible repayments.

“Most of the times customers don’t have to pay any processing fee. The cost is shared between the bank and the e-com retailer. However, foreclosure is either not allowed or turns out to be an expensive affair,” says Anuj Kacker, Co-Founder & COO, MoneyTap.

Also, converting card spends into EMIs is costlier (as it comes at a higher interest rate) than EMIs on a personal loan for the same amount.