Archive · 26 Sep 2025
EMIs and BNPL: Are Consumers Really Shopping Smarter?
Consumers in India are increasingly using methods like no-cost EMIs and buy-now-pay-later plans to purchase items.
While these seem convenient, they can lead to overspending and increased debt.
The author suggests these options can fuel impulse purchases, making it harder to save money and maintain financial freedom.
The goal is to provide awareness on debt and impulse buys.
Consumers are enticed by no-cost EMIs and BNPL offers.
One-third of income for many goes to EMIs.
Household debt in India rose from 32% of GDP in 2013 to 49% in 2025.
Hidden charges on EMIs might lead to paying more overall.
Endless EMIs could lead to a decrease in financial freedom.
- Who
- Consumers
- What
- The effects of no-cost EMIs and BNPL on consumer spending.
- When
- Ongoing
- Where
- India
- Why
- To highlight the potential dangers of easy credit options.
Consumer Perspective
Financial Analyst Perspective
Benefits
Consumer Perspective
No-cost EMIs and BNPL make it easier to afford purchases.
Financial Analyst Perspective
These methods promote overspending and hidden costs.
Financial Impact
Consumer Perspective
Increased access to goods and services.
Financial Analyst Perspective
Can lead to increased debt and financial burden.
- Household Debt in India (2013)
- 32% of GDP
- Household Debt in India (2025)
- 49% of GDP
- Common Use
- EMIs and BNPL
- Potential Impact of No-Cost EMIs
- Hidden charges or lost discounts
