EMI or Rent, What’s the best buying option?

EMI-vs-Rent

Choosing between, Rent repayment or disbursement of the EMI, is undeniably a decision full of ambiguities. Quick Read below to visibly understand as to why EMI is a better alternative.

Availability:
EMI is availed when you purchase brand new/sealed or unused consumer durable goods.
Rent facility is availed on consumer durable goods which are already used or unpacked.

Flexibility:
EMI offers flexibility to choose the tenure and down payment amount as per our income, credit profile, and convenience.
Rent amount and repayment duration is fixed and does not vary as per the individuals financial standing or convenience.

Sales Impact:
EMI schemes increase sales.
Rent system does not affect sales.

Risk Factor:
EMI service provider does not have to bear the risk about product damage.
Rent service provider bears the risk if the equipment breaks down or product is damaged.

Repayment:
EMI amount can be paid periodically until it matures or one can write off the amount before the EMI tenure ends.
Rent is a specific amount that has to be paid periodically. There is no option to write off or pay in lump sum.

Schemes:
EMI schemes like 0% interest options are available on basis of the borrowed amount.
Rent option suggests a fixed amount that is to be paid mandatorily depending upon the product price.

Calculations:
EMI amount and does not vary from seller to seller and there is a specific formula to calculate it.
Rent amount is pre-decided and varies from seller to seller.

Ownership:
EMI empowers the buyer to own product which they cannot afford to buy and pay for at one go.
Rent system does not provide any ownership of the product. You have no claim on the product even when you are using it.

Final Word:
EMI option is a better choice over rent in today’s digital and tech-friendly environment. Apart from the joy of ownership and instant gratification, the simplicity and ease of loan application make it a more preferred option. Fintechs like Snapmint provide easy EMI plans on purchases without lengthy procedures or extended verifications.
Nonetheless, renting will soon be a tale of the past.

Also, Read How to pay your EMI’s easily for more related info.