As India enters the festive shopping season, purchases of televisions, refrigerators, air conditioners and other consumer durables are becoming increasingly linked to credit and equated monthly instalments (EMIs). OneAssist has highlighted the financial risks consumers may face when these purchases are followed by unexpected repair or replacement expenses.
According to OneAssist Co-Founder Subrat Pani, around 60% to 70% of high-value consumer durables are now purchased on credit. The company says this reflects a broader shift towards using consumer loans to finance aspirational purchases and lifestyle upgrades.
What Is the ‘Double EMI Trap’?
The financial pressure can increase when an appliance purchased on EMI breaks down. Consumers may need to pay for repairs upfront or replace the product while continuing to repay the original loan.
According to OneAssist, repairing a major appliance can cost close to half its value, while replacement can require an even larger outlay. For households already managing monthly instalments, these additional expenses can strain budgets.
The company describes this situation as a ‘double EMI trap’, in which consumers face the financial burden of an existing purchase alongside the cost of repairing or replacing the product. A festive upgrade can consequently become a longer-term financial commitment.
Consumer Durables Face a Protection Gap
OneAssist has also highlighted a gap between the growing ownership of consumer durables and the protection plans available to cover potential damage or repair costs.
The company says a significant share of Indian households has experienced damage to a major appliance or electronic device, while relatively few have a protection plan for these products.
At the same time, replacement cycles for major appliances and electronics have lengthened in recent years. Consumers are therefore expected to keep their products functional for longer, making unexpected repair expenses a concern well beyond the initial purchase.
Tier II and Tier III Cities Also Embrace EMI Purchases
The trend is extending beyond India’s major metropolitan areas. According to OneAssist, consumers in Tier II and Tier III cities are increasingly purchasing premium consumer durables on EMI and accessing organised after-sales and repair services.
This expansion suggests that the financial risks associated with credit-funded purchases are not limited to metro households. As premium products become more popular across smaller cities, consumers may also face the costs of maintaining, repairing or replacing them.
OneAssist Highlights the Importance of Protection Plans
OneAssist says protection plans can help consumers prepare for unexpected repair expenses after purchasing consumer durables. The company positions protection as an additional consideration alongside festive discounts, cashback offers and financing schemes.
For households purchasing expensive appliances on EMI, understanding the terms and coverage of a protection plan can be an important part of assessing the overall cost of ownership.
What Consumers Should Consider Before Festive Shopping
Festive offers can make big-ticket purchases more accessible, but buyers should consider more than the initial price and monthly instalment. They should also account for potential repair costs, replacement expenses and the coverage offered by any protection plan.
OneAssist recommends considering protection alongside the purchase to help reduce the financial uncertainty associated with unexpected damage or breakdowns. Consumers should review the plan’s coverage, exclusions, duration and claim conditions before making a decision.
As festive shopping drives demand for consumer durables, the company is urging buyers to consider long-term ownership costs as well as the immediate benefits of a new purchase.
Also read – Girikon.AI Develops Koyal Voice AI Model for Natural, Multilingual Conversations
Join us on LinkedIn for quick updates – FYI9 News LinkedIn
