Different Ways to Finance Your New Smartphone in India

It is no secret that a smartphone is no longer a calling device only. It is used to check the time, put an alarm, click photos, social media, net banking, finding routes, ordering cabs and food, etc. People can perform their job duties over the phone. In short, if we can put it part of our lives are controlled/Influenced by Smartphones. There are certain aspects to remember while you plan to buy a smartphone. The following pointers will help you make up your mind.

How Much Do Smartphones actually Cost?

• Price: Smartphones like Apple iPhone 11 Pro Max, Samsung Galaxy Note 10+, and Note 9 are comparatively expensive having to range from 50K to 120K. In contrast, Vivo VZ1 Pro and Samsung Galaxy M40 come in an affordable under 20K. The smartphone which you can purchase will ultimately depend upon your budget.
• “Value”: According to Moore’s law, the analogy of a mobile phone is a depreciating asset and the number of transistors doubles every two years. New models and technology take over the market every year. Thus your smartphone will be relevant for a few years only. Afterwards, you might want to upgrade to the latest phone.
• Use: Almost all the functions of a smartphone can be performed by the lower budget models as well. But if you insist on good sound, or picture, or gaming, then you might need to shed more money on a smartphone.
• Hidden charges: There are other hidden costs of paid download, internet charges, and subscriptions. It would help if you kept that in mind while buying a smartphone.

How to Arrange Finance?

• Retail Stores: There are options to pay via credit card. This option is used by many offline retailers/Stores for one or many credit card collaboration with other financing company to help their customers finance and buy and their phone. However, you need to maintain a good CIBIL score to get a credit card.
• Online stores: There are 0% interest EMI schemes offered by online and offline retailers. Check out the best credit option based on your monthly income. Major players offering NO COST EMI in today’s market are HDFC, SBI, ICICI etc.
• Marketplace: Sell your old mobile phone at a reasonable price to partly finance your new smartphone. The best way to find your phone worth is by looking through the product exchange price offered by Amazon/Flipkart Else sell via Olx, Facebook market etc locally in profit.
• Financial institution: You can take a personal loan from any bank if your CIBIL score is good to buy an expensive phone. But please be careful of how the Indian Loan management system has changed after the pandemic.
• Online P2P lending platform If you don’t have a good CIBIL score, there is an option in that case as well. You can be a part of the Online P2P lending platform. Nowadays, you can find an Online chit fund platform also that are driving financial inclusion by bringing investors and burrower in one platform to meet their mutual needs.

What If You Can’t Find A Finance Option?

Getting a loan is not a cakewalk for everyone. The majority of people in India are from the low-income group. Not everyone can maintain a perfect CIBIL score to get a Credit card or bank loan. Many people follow the practice of paying their labourers or employees in cash. In such cases, it becomes difficult for them to prove their income. To make matters worse, we are going through a pandemic. Due to which, many people lost their job or running their household on a reduced income.

P2P lending groups can come to your rescue if you are a victim of any such financial crisis. They do the least paperwork. And they are flexible in terms of the loan tenure. Suppose you can’t find a chit fund company or group nearby. You can always look for a reliable and secured online chit fund platform like Money Club that works on the similar principle of ROSCA (Rotating Credit and Savings Association) merged with the technology of P2P lending.

Wrapping Up!

Everyone has their own goals, Budget and creditworthiness, so the best financing option for one person will not be attainable for another. So before buying a smartphone always ask the following question: 1. What is the best price at the right store? 2. What are the Perks associated with buying the phone from a particular brand and retailer? 3. What is my best financing option according to your appetite/budget? There are multiple new avenues of finance available nowadays. Because of technological development, you can check the transparency and security of any finance company. So always take an in-depth look at your finances before deciding how to finance your cell phone purchase.