Archive · 3 Aug 2025
Gen Z Fuels Luxury Spending with EMIs
Young people are using easy monthly payments (EMIs) to buy things they want, like iPhones.
This is because EMIs make expensive items more affordable.
Lots of people, especially Gen Z and millennials, are using EMIs.
During big sales events, many purchases are made using EMIs, especially for smartphones and appliances.
Apps and online tools are making it easier to get these EMIs.
While it helps people buy what they want, it also means people are spending a bigger part of their income on loans.
EMIs are driving aspirational buying, particularly among Gen Z and millennials, enabling purchases they couldn't otherwise afford.
About 40% of smartphones in India are bought through EMIs, with the figure rising to nearly 70% for iPhones.
No-cost EMI, instant bank discounts, and exchange offers are boosting demand for premium products.
43% of borrowers favor EMI cards, while 64% prefer embedded finance on e-commerce and travel platforms.
Salaried individuals in India allocate over 33% of their monthly income to loan EMIs.
- Who
- Gen Z and millennials, along with lower-middle-class consumers.
- What
- Increased use of EMIs for purchasing luxury items.
- When
- Recent trends observed, with data from 2024 studies and events like Amazon Prime Day.
- Where
- India, with a focus on online and offline markets.
- Why
- To make high-value purchases more affordable and accessible.
Benefits of EMIs
Risks of EMIs
Convenience vs. Risk
Benefits of EMIs
Provides convenience for purchasing without full payment.
Risks of EMIs
Leads to increased credit-driven consumption.
- Smartphone EMI Rate
- Around 40%
- iPhone EMI Rate
- Close to 70%
- Prime Day EMI Growth
- More than 30%
- Premium Smartphone Growth
- Over 60%
- Borrowers favoring EMI Cards
- 43%
- Borrowers favoring Embedded Finance
- 64%
- Monthly income for EMIs
- Over 33%