How to buy an iPhone on EMI?

The iPhone is a highly coveted device known for its advanced technology, sleek design, and premium features. However, its high cost can be a barrier for many potential buyers. Fortunately, purchasing an iPhone on EMI (Equated Monthly Instalments) using a credit card makes it more accessible by allowing you to spread the cost over several months.

This guide will explain how to buy an iPhone on EMI with a credit card, the benefits of this option, and answer some frequently asked questions.

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Understanding EMI for iPhone Purchases

What is EMI?

EMI stands for Equated Monthly Instalments, a financing option that breaks down the total cost of a purchase into smaller, manageable monthly payments over a specified period. When you buy an iPhone on EMI using your credit card, the credit card issuer pays the full amount to the retailer, and you repay the issuer in instalments.

Types of EMI Plans

Credit card EMI plans generally come in two forms:

• No-Cost EMI: You pay the actual cost of the iPhone divided over several months without any additional interest or fees.
• Standard EMI: You pay the cost of the iPhone plus interest, which is divided into monthly payments.

Read more: 5 ways to make the most of your credit card

Steps to Buy an iPhone on EMI with a Credit Card

Step 1: Check Credit Card Eligibility

Ensure that your credit card issuer offers EMI options. Not all credit cards support EMI transactions. You can check this by logging into your credit card account online, contacting your bank’s customer service, or visiting the bank’s website.

Step 2: Choose Your iPhone

Select the iPhone model you wish to purchase. This can be done through various channels:

• Online Retailers: Websites like Apple’s official store, Amazon, Flipkart, and other e-commerce platforms often provide EMI options.
• Physical Stores: Apple stores and authorised retailers offer EMI options on in-store purchases made with credit cards.

Step 3: Select the EMI Option

When you reach the payment stage:

• Online Purchase: Choose the EMI option during checkout. You will typically see different tenure options (e.g., 3, 6, 9, 12 months). Select the one that fits your financial plan.
• In-Store Purchase: Inform the cashier or sales representative that you want to use the EMI option with your credit card. They will guide you through the process.

Step 4: Complete the Transaction

After selecting the EMI option:

• Enter your credit card details if purchasing online, or swipe your card if buying in-store.
• Confirm the transaction and ensure the EMI plan is correctly applied. The first instalment will typically reflect on your next credit card statement.

Read more: How long does it take to improve your credit score?

Benefits of Buying an iPhone on EMI with a Credit Card

Manageable Payments

EMI allows you to break down the cost of an expensive iPhone into smaller, more manageable payments, reducing the immediate financial burden.

No-Cost EMI Options

Many retailers and banks offer no-cost EMI options, meaning you can spread the cost without paying extra interest.

Reward Points

Purchasing an iPhone on EMI can help you earn reward points, cashback, or other benefits offered by your credit card issuer.

Build Credit History

Making timely payments on your EMI plan can help build and improve your credit score, showcasing responsible credit usage.

Immediate Ownership

You can own and start using the latest iPhone immediately without waiting to save up the entire amount.

Read more: CIBIL score for credit card – minimum and maximum

Things to Consider

Interest Rates

While no-cost EMI is attractive, some EMI plans come with interest rates. It’s essential to understand the total cost you’ll be paying over the period.

Processing Fees

Some banks charge a one-time processing fee for converting a transaction into EMI. Check with your bank for any additional charges.

Credit Limit

The total cost of the iPhone will be blocked on your credit card limit initially and will be released gradually as you repay the EMI. Ensure you have a sufficient credit limit before making the purchase.

Prepayment and Foreclosure

Some banks allow you to prepay or foreclose your EMI plan but may charge a penalty for doing so. Check the terms and conditions of your EMI plan.

FAQs About Buying an iPhone on EMI with a Credit Card

Q1: Can I buy any iPhone model on EMI with a credit card?

Yes, you can buy any iPhone model on EMI with a credit card, provided the retailer offers EMI options and your credit card issuer supports it.

Q2: How is the EMI amount calculated?

The EMI amount is calculated based on the iPhone’s cost, the tenure of the EMI plan, and the interest rate (if applicable). Online calculators are often available on bank websites to help you estimate the EMI.

Q3: Will opting for EMI affect my credit score?

Opting for EMI itself does not affect your credit score. However, timely repayment of EMIs can positively impact your score, while missed payments can negatively affect it.

Q4: Can I convert an existing credit card purchase into EMI?

Yes, many banks offer the option to convert an existing purchase into EMI within a specific period after the transaction. Contact your bank to check if this service is available and the associated terms.

Q5: What happens if I miss an EMI payment?

Missing an EMI payment can lead to late fees and interest charges. It can also negatively impact your credit score. Ensure you have enough funds to make timely payments.

Buying an iPhone on EMI with a credit card is a convenient way to manage the cost of a new device. By breaking down the total amount into smaller, manageable payments, you can afford the phone you want without straining your finances. Ensure you understand the terms of your EMI plan, including any interest rates and fees, and make timely payments to maintain a good credit score. With careful planning, you can enjoy your new iPhone while keeping your budget in check.