Financial Management Practices in Credit-Driven Consumerism: A Study of no Cost Emi Practices

The increasing popularity of No Cost EMI (Equated Monthly Installment) schemes in India has reshaped consumer purchasing and financial management practices, particularly in the electronics sector. This paper explores how consumers plan, budget, and manages their finances when engaging in No Cost EMI purchases. While the scheme promotes affordability and accessibility, it simultaneously alters traditional budgeting patterns, savings habits, and perceptions of debt. Many consumers view such EMI’s as cost-free, leading to changes in spending discipline and long-term planning. The study aims to analyze financial management practices such as budgeting, debt control, and savings adjustment influenced by No Cost EMI usage. Insights from existing literature highlight that while such schemes democratize access to high-value goods, they also create challenges in liquidity management and responsible borrowing. The findings emphasize the importance of financial literacy, transparency in EMI terms, and consumer education in promoting sustainable financial behavior.