Festive shopping on EMIs? Beware the debt trap of stacking them
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Festive deals and easy monthly payments make big purchases simple, but stacking EMIs can hurt your savings and future borrowing.
- ✓Expert Parijat Garg warned, "When lending becomes frictionless, convenience turns into a silent debt trap." Many buyers now commit future income to multiple loans, which often leads to financial trouble.
Story at a Glance
- Category
- BUSINESS
- Reported By
- mint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Summary
Festive deals and small monthly payments make big-ticket purchases easier, but stacking EMIs can strain cash flows, erode savings and hurt future borrowing prospects.
Big-ticket purchases for most Indian households tend to be concentrated around festivals, sales and wedding seasons. With average ticket sizes for durable goods rising, Buy Now, Pay Later (BNPL) schemes and equated monthly instalments (EMIs) have made high-value purchases more accessible.
The trend is being fuelled by platforms that highlight the small monthly payment rather than the total cost, framing a ₹30,000 item as a commitment of just ₹4,800 a month. Buyers often purchase multiple products on instalments simultaneously, normalizing a risky habit known as EMI stacking, particularly during the festive season.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
mint
Read the full, original unfiltered story directly on the publisher's portal.