EMI lene ki aadat ne aapko financial freedom diya ya aapko debt ke chakravyuh me phasa diya? šø Kya har sapne ka payment plan sahi hai? Samajhiye India ke EMI culture ka asar, sirf Nazar Ya!
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00:00Jinta Janardhan, in this very cold weather, Sanika and I are going to talk aboutā¦
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.