Planning to buy Apple iPhone 18 Pro on 'No-Cost EMI'? Is your smartphone purchase an invisible debt trap?

Planning to buy an Apple iPhone 18 Pro through no-cost EMI? The monthly figure may look easier than paying the full price immediately. However, additional costs and borrowing risks can lurk behind that attractive label.

Unicorn Store advertises 6-month No-cost EMIs starting at ₹26,316 for the 256GB option. Its selling price is ₹1,64,900, reduced to ₹1,57,900 through a ₹7,000 discount.

That discount applies to select bank card EMI purchases. Even after this benefit, buyers commit to substantial payments for six months.

The monthly instalment rises to ₹30,482 for 512GB and ₹38,815 for 1TB. For 2TB, it reaches ₹51,315, against an effective price of ₹3,07,900. Dividing these prices into instalments changes the payment schedule rather than the purchase amount.

The first possible trap is losing out on a better offer by paying up front. Consider a ₹60,000 phone available for ₹53,000 through a full-payment offer. Choosing 6 instalments of ₹10,000 instead means paying ₹60,000. The buyer loses ₹7,000 before considering any additional charges.

However, losing an upfront discount is not a feature of every EMI offer. Unicorn's advertised prices explicitly include a ₹7,000 EMI discount. The relevant comparison is between the EMI total and the available upfront price. An attractive financing label cannot replace that comparison.

The second concern is charges beyond the advertised instalment. A bank may charge a processing fee for converting purchases into EMIs. Such fees can range from ₹199 to ₹500. An 18% GST charge on the interest component can add another expense.

These costs can remain separate from the prominently-advertised monthly payment. Their exact amounts depend on the applicable financing terms. Buyers should therefore check the full repayment details before assuming the arrangement costs nothing.

Another trap is mistaking a smaller instalment for a cheaper phone. India Store advertises 12-month payments of ₹9,575 with exchange and ₹13,742 without exchange.

The lower figure assumes the surrender of an eligible Apple iPhone 15 Pro (128GB) in good condition. Its calculation includes ₹40,000 trade-in value and an exchange bonus up to ₹10,000.

Still, smaller payments involve upfront money or longer repayment periods. With 33% down payment, 16-month instalments are ₹4,811.40 with exchange and ₹6,905 without exchange. The monthly figure alone, therefore, hides important differences between plans.

Is No-cost EMI a debt trap?

Several seemingly-manageable purchases can also squeeze household spending. Imagine paying ₹4,000 for a television, ₹3,500 for a tablet and ₹5,000 for appliances.

Together, these instalments consume ₹12,500 per month before rent, groceries, or unexpected expenses. Adding a phone instalment increases this fixed burden.

Credit card availability can shrink, too. The fully-financed purchase can block that amount against your card limit. A ₹90,000 purchase against a ₹1.5 lakh limit leaves ₹60,000 available. This can reduce your room for emergency spending.

Missing full-card payments creates another risk. Unpaid balances can attract expensive regular credit card interest, depending on the lender's terms. A manageable purchase can then become a more difficult repayment problem.

A no-cost EMI does not automatically mean a debt trap. But discounts, fees, blocked credit, and overlapping instalments can make borrowing harder to manage. Compare the total cost, rather than just the monthly amount.