Kya EMI Culture Ne Hamari Life Simplify Ki Ya Aur Mushkil Banayi? 🤔

OutlookIndia

EMI lene ki aadat ne aapko financial freedom diya ya aapko debt ke chakravyuh me phasa diya? 💸 Kya har sapne ka payment plan sahi hai? Samajhiye India ke EMI culture ka asar, sirf Nazar Ya!

Transcript

00:00Jinta Janardhan, in this very cold weather, Sanika and I are going to talk about…

00:17AMI culture.

00:18Yes.

00:19Sanika ji, what do you think?

00:21Recently, I wanted to buy a phone.

00:24And then I was thinking of buying an iPhone.

00:26But then I saw that 7 out of 10 iPhones bought in India are on AMIs only.

00:31So, basically, then I remembered that, no, a little, you know.

00:36But nowadays, Indians are mostly buying things on AMI.

00:40In fact, groceries are also going to be available on AMI.

00:43Especially on Zepto.

00:44Hmm.

00:45There is more financial awareness compared to the previous generation.

00:48Actually, AMI culture is also fooling people.

00:52Because usually it happens that we buy things on AMI.

00:55But mostly, no-cost AMI is written.

00:58So, it feels like we are buying on the actual price.

01:01But there are so many hidden charges in no-cost AMI.

01:04Exactly.

01:05One is that processing is free.

01:06RBI actually says that no banking institution in India can give loans at 0% interest rate.

01:13Hmm.

01:14So, how are no-cost AMIs valid?

01:16Exactly.

01:17And GST is also very high on them.

01:19I think GST is around 90-20%.

01:21Yes.

01:22And this is the same thing.

01:23Earnings, expenses.

01:24Rupees.

01:25Rupees.

01:26How did this happen?

01:27My earnings are Rs. 50,000.

01:28And expenses are Rs. 4-5 lakhs.

01:30If I want to buy something like this.

01:31Buy.

01:32I know.

01:33And because of this, I think, spending has also increased so much that,

01:36overall, all the people who have lived in the world,

01:40our savings have been the least.

01:42Hmm.

01:43Exactly.

01:44And I remember that, even if they take,

01:46so they will invest more in housing.

01:48Hmm.

01:49Or vehicles.

01:50Yes.

01:51But slowly, it is going from macro to micro.

01:53Slowly.

01:54And I am surprised that,

01:56there are 3 types of consumer goods.

01:58Convenience, shopping, and speciality, which is luxury.

02:02Hmm.

02:03Now, if you start buying on luxury,

02:05so I think there is a big problem there.

02:07Hmm.

02:08I think that is what is drawing people.

02:10But actually, this also stems from the generational gap.

02:14This is because,

02:15our interest rates have increased so much in this.

02:17We can't even afford to buy a house in the metro cities.

02:22So, eventually, if I can't buy a house,

02:25then I will buy good expensive luxury things,

02:28and at least satisfy that much.

02:30You can satisfy yourself.

02:31Yes.

02:32So now, I think that is also going on.

02:33The culture of soft saving is going on.

02:35That we will invest very little in our future.

02:37Because the future is so uncertain.

02:39By changing the climate, we can just die.

02:41So we are not going to retire.

02:43And Covid has actually lived in the moment.

02:45Yes.

02:46It doesn't exist anymore.

02:47This is more in people, in Gen Z.

02:49I actually saw a survey.

02:5140-50% people have stopped retiring from Covid.

02:56Whether they will live now or tomorrow.

02:59Yes.

03:00And it has actually,

03:01all the big brands, all the big companies,

03:03they have created this ignorance towards inflation.

03:06Hmm.

03:07See, on our Amazon Flipkart,

03:09one is the main price of the thing.

03:12Along with that, there is an EMI.

03:14Yes.

03:15This is an illusion.

03:17Because since RBI has banned giving loans on zero interest.

03:22So whatever the cost is,

03:24suppose there is a phone of Rs 30,000.

03:26So the discount of Rs 5,000 out of Rs 30,000,

03:29actually goes to the bank as an EMI interest rate.

03:32And the rest goes to the vendor.

03:34So actually, we are giving interest rates.

03:36And when we take this 1000 times,

03:38then the bank inquires with our credit score.

03:41Similarly, our Sybil can also go bad.

03:43Oh, nice.

03:44And I think EMI is essentially not a bad practice.

03:48It is a good practice.

03:49But its different aspects can be exploitative.

03:53Okay.

03:54Like you said,

03:55a good practice can be that

03:57if your Sybil score is good,

03:59it will help you take more bigger loans.

04:01I think EMI is a very good option

04:03because it makes things affordable.

04:06Because we don't need a lot of savings.

04:08For example, I need a fridge.

04:10My fridge is broken.

04:11I don't have money to buy a new fridge right away.

04:14So it actually helps you live.

04:16But I think the problem arises

04:18when we actually overexploit it so much

04:22that as soon as the salary of the month comes,

04:24the entire bank account is empty in giving EMI.

04:27But I think the same people don't understand

04:29that whenever we take anything on EMI,

04:31there is a processing fee in it.

04:33So that processing fee actually adds up.

04:35And it is not seen before.

04:36And taxes also add up.

04:38So these are all hidden costs

04:40that we should actually study in fine print

04:42before doing things on EMI.

04:43Absolutely.

04:44There is a lot of need for more awareness towards EMI.

04:47If you want to buy something,

04:49for example,

04:50if you want to buy a phone worth Rs 30,000,

04:52then you should have Rs 60,000.

04:54Only then you buy it.

04:55You should have 2x amount.

04:57Only then you will buy it.

04:58And this is a part of the financial advices.

05:01And Sanika's financial sense is very good.

05:03She has given me some such advices before

05:05which we will share with you today.

05:07And it is not a mutual fund.

05:08There are so many options for savings.

05:10There is digital gold,

05:11there are stocks.

05:12You can just read it up yourself

05:14and you can invest anywhere.

05:15Save that money first with you

05:17and then buy the product directly.

05:19True.

05:20I have to agree with this.

05:21And also,

05:22I have heard that

05:23there is an extra charge on prepayment.

05:25Yes.

05:26If you pay quickly,

05:27then they will charge more money.

05:29Usually loans are like this.

05:31If you do prepayment,

05:32then there is a fee.

05:34But if you do it on EMI,

05:36then this fee is very high.

05:38Exactly.

05:39So if you are taking EMI,

05:41then plan it in such a way

05:42that it is in that period

05:43when you don't have to pay any extra charge.

05:45Yes.

05:46So guys...

05:48Before going,

05:49Sanika told me a very interesting thing.

05:51Are flights available these days?

05:52Oh yeah.

05:53Actually,

05:54if you want to book a flight to Indigo,

05:56then with ICICI or Kotak Mahindra card,

05:59you can book a flight in 3-4 months in advance on EMI.

06:02But suppose there is a flight for Rs. 10,000,

06:04then the processing fee is Rs. 300-400.

06:06Yes.

06:07So it's upon you.

06:08Yes.

06:09But make an informed decision.

06:10That's what we mean by this video.

06:12Yes.

06:13Thank you for watching this video.

06:15Please don't forget to like, share and subscribe to us.

06:18On Instagram and Facebook.

06:20Of course,

06:21we are on Instagram and Facebook.

06:22And if you are watching this video on iPhone,

06:24then please tell us in the comments

06:25whether you have taken this on EMI or not.

06:28Okay.

06:29So this is Sanika.

06:30This is Ashish.

06:31We'll see you.

06:32Bye.

06:33Bye.

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