Tag: emi

The Hidden Burdens of Making Big Purchases

Posted on by Aziz Ampanwala

We are living in an advanced world where grocery is home delivered and cars can self-drive. There has been a limitless advancement in the world of automation that conveniently helps us live a hassle-free life. But there are a few things which take a while in deciding – the need to upgrade on regular bases without hampering the savings. It could be anything from furniture to appliances to even bikes.

Understanding the changing behavioural pattern of humans and the need of change on a regular bases, the invention of providing quality products for rent at monthly/yearly contractual bases was developed by Rentomojo.

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What are the benefits of renting furniture/appliances/bikes with Rentomojo over owning it through EMI?

  • Helps you upgrade on monthly or yearly bases with fresh new products
  • Savings on relocation cost as relocation charges are free
  • Service support and free maintenance
  • Cancelling anytime, hassle-free, even if you are in a 12 months contract and wish to end it in the 8th month

Let’s consider an example to break down on hidden expenses that occur while buying stuff. Mr.Know-It-All buys an air conditioner at 35,000 on EMI for 12 months at a 10% rate of interest. He ends up paying 38,500 by the end of the year, plus the hidden cost of installation, regular servicing and breakdown that could end up somewhere around 4,000 per year. So, that adds upto 38,500 + 4000 = Rs. 42,500.00.

Here is a smart alternative – by renting with Rentomojo, we have a typical 3-month summer in most parts of India. Considering this, if you rent appliances such as an air conditioner with Rentomojo at the cost of 1,989 per month, that would add up to 1989 X 3 = Rs. 5,967.00 inclusive of free service, installation, and maintenance. Now that’s called #SmartlyOwn.

Considering the above example, it is evident that renting can be a smarter choice in most of the cases as compared to owning a product. With Rentomojo comes a lot of flexibility to choose products in the time frame convenient to you; with the added feature of free relocating and maintenance is a win-win situation.

Making smart choices and saving right to maximize living is #SubscriptionLifestyle. Let’s pledge to stop spending on monthly EMIs on interest and owning something that will eventually have hidden cost of servicing and maintenance (not to forget the depreciating resale value) and start living a smart and hassle-free life with renting appliances, furniture, and bikes with Rentomojo.

Bike Finance option in Pune

Posted on by Aziz Ampanwala

Ok, so now i was sorted which bike to purchase, if you have missed the previous post, you can check it out here: Finding new bike in Pune

Next stop in my quest to purchase a bike was finance, thou dad said we shall pay in cash, still I convinced dad about considering bike finance in Pune  or minimal check loans as many banks and financial corporation are providing convenient payment options, minimal documentation and long durations tenures which helps in paying as per individuals budget and prevents from sinking the pocket empty in one go.

financial reports.

Let me list a few major two wheeler loan providers in Pune  from the research I did while looking for the best one, a few in random list:

1) Bajaj Finance

2) ICICI Bank

3) HDFC bank

4) Tata Capital

5) Bank of India

6) State Bank of India

7) Kotak Mahindra Bank

If you are looking to compare them do consider the following parameters:4575652744_313x227

1) Interest rate (the lower the better)

2) Processing fees (has to be minimal)

3) Maximum repayment period (the higher the better)

Some of the basic documentation required as income proof in most bike loans procedures:

1) If you are salaried then

  • Should be 21 years or above
  • 3 months salary slip
  • Minimum gross income of 1.5 lacs per year
  • ITR or FORM 16 if applicable
  • Resident proof

2) If you are self employed then

  • Should be 21 years or above
  • Bank statement of 6 months minimum
  • Minimum gross income of 1.5 lacs per year after tax deduction
  • 2 years ITR with tax deductions if applicable

So, if you are sorted with your documentation, then you can avail the services of finance, however in this age where we compare every little thing before we purchase and as I have listed above some pointer for comparison. One major aspect is bike loan interest rate in Pune, let’s compare with an example for a better idea:

Loan Provider Rate of Interest Tenure Processing Fees
ABC Bank 10% 2 years 2% on total amount
ABC Finance 12% 3 years 1050.00
ABC Corporation 20% 2.5 years 1.5% on total amount
ABC FinCorp 15% 3 years 500.00

So which one is better? Considering the least amount of interest, processing fees and the maximum tenure period as a first option, in my example ABC FinCorp was providing a good interest rate with more tenure, so I would consider that as my first option as bike loan in Pune.

Summing all up, finding a decent bike finance in Pune is easy, considering you have proper documents in place, as approaching to any finance provider they require some guarantee that your pay back is considerable.