No-Cost EMI Smartphone Price: Amidst calls for the discontinuation of no-cost EMI, there's growing talk of a price reduction for smartphones. However, companies have yet to confirm any changes.

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No Cost EMI Smartphone Price: If you're thinking of buying a new smartphone, you may see a significant price change in the near future. The All India Mobile Retailers Association (AIMRA) has urged major companies like Samsung, Apple, Xiaomi, Vivo, Oppo, and Realme to discontinue their No Cost EMI schemes. Retailers say this scheme results in higher prices for every customer, whether they purchase the phone on EMI or pay the full amount upfront. The question now is how much cheaper phones can become if this scheme is truly discontinued.

Why did the demand for stopping No Cost EMI arise?

According to AIMRA, no-cost EMI plans lasting up to 24 months cost companies approximately 17 to 19 percent of the phone's price. Retailers argue that the interest charged by banks and finance companies on no-cost EMIs is paid by smartphone companies, and the cost of these schemes is already built into the phone's price, resulting in higher prices for all customers.

To put it simply, suppose a smartphone's current price is ₹30,000, and the No-Cost EMI cost already includes approximately 18%, or ₹5,400. If companies completely remove this scheme and return this amount to customers as a discount, the same phone could cost approximately ₹24,600.

What will happen next and what should customers understand?

At present, this entire issue is only at the demand and discussion stage. Smartphone companies have not yet confirmed the discontinuation of No Cost EMI or any price reduction, so it would be premature to expect any immediate price reduction. Furthermore, the RBI has recently tightened various EMI rules, such as requiring loan-related information to be clearly disclosed in the Key Facts Statement, so that customers can be aware of any hidden charges upfront.