Festive shopping gets an EMI twist as Indian consumers finance big-ticket purchases

MUMBAI: This festive season, the shopping cart may be full, but so is the EMI calendar. As Dussehra and Diwali approach and the festive mood stretches towards New Year, Indian consumers are opening their wallets for televisions, refrigerators, air conditioners, cars and other big-ticket purchases, increasingly with credit.

For many households, buying a new appliance during the festive season is about more than upgrading a gadget. It can represent prosperity, a renovated home or a long-awaited family purchase. But with more consumers financing these purchases, the financial equation does not end when the product is delivered.

According to OneAssist co-founder Subrat Pani, 60 to 70 per cent of high-value consumer durables are now purchased on credit. The trend points to a broader shift in household consumption, with loans and EMIs increasingly being used to finance lifestyle purchases rather than simply spread the cost of an occasional buy.

That creates what Pani describes as a three-part equation: purchase, EMI and repair.

The third part can become particularly painful when a high-value appliance breaks down. A repair can cost a substantial portion of the product’s value and may require an immediate out-of-pocket payment. Replacing the product, meanwhile, can mean taking on another sizeable expense.

For a household that is still paying the EMI on the original purchase, an unexpected repair bill can therefore add pressure to an already stretched budget. If replacement becomes necessary, another financed purchase could create what Pani describes as a “double EMI trap”.

The issue becomes more significant because many households continue to use their major appliances and electronics for longer periods. As replacement cycles stretch, products are expected to remain functional for more years, potentially increasing the importance of repair and maintenance costs.

At the same time, a sizeable number of households have experienced damage or breakdowns involving big-ticket consumer durables, while protection plans remain less widespread.

The trend is also moving beyond India’s major metros. Consumers in Tier II and Tier III cities are increasingly buying premium televisions, appliances and other electronics through EMI-based financing, while organised after-sales and repair services are expanding in these markets.

That means the financial pressure associated with a damaged premium appliance is no longer confined to India’s largest cities. As premiumisation spreads across non-metro markets, consumers taking on larger purchases through credit may also have to account for the cost of keeping those products running.

For OneAssist, this creates an opportunity to position protection as a part of the broader consumer purchase journey rather than an afterthought.

A television may be the centrepiece of a Diwali gathering, while refrigerators, washing machines and air conditioners form the backbone of everyday household life. An unexpected breakdown can disrupt both, particularly when the original purchase is still being paid for.

Festive offers, cashback schemes and financing options are likely to make big-ticket electronics and appliances more accessible this season. But the cost of ownership does not end at checkout. For consumers financing their purchases, planning for potential repair and replacement costs could be just as important as choosing the right festive deal.