Question

State one advantage of EMI.

Hint:

Remember: EMI = Small payments, big dreams come true!

Answer 1

EMI stands for Equated Monthly Installment.
One major advantage of EMI is that it allows customers to buy costly goods or services like vehicles, electronics, or houses without paying the full amount upfront.
The total payment is divided into easy monthly installments, which makes big purchases affordable for people with fixed monthly income.
EMIs help manage budgets better, avoid big one-time expenses, and make personal finance more predictable.
This is why many loans — like home loans, personal loans, or consumer durable loans — are structured with EMI options.