Easy Money!

<div class="section1"><div class="Normal"><span style="" font-style:="" italic="">Can''t afford the MRP on an object of desire? Opt for the EMI, as many young people in the city are now doing </span><br /><br />The newest buzzword on the lips of many moneyed young guns, are Equated Monthly Installments, or EMI''s for short. <br /><br />EMI''s facility seems to be giving people a lot more purchasing power.Some even equate it with their vision of the so-called ''American Dream''. "Americans often stretch their finances beyond their means. And when you cant afford the MRP, you just get right past that hurdle and go for the EMI option instead!" exclaims Om Kapadia, a 24-year-old marketing executive. <br /><br />And for those who''ve started making their moolah relatively early, a regular shopping spree is hardly a strain on the pocket. "But when you start off earning early, you tend to want to settle down before your peers. My friends are still partying out on their paycheques. I however needed to invest my money. The EMIs came in handy because I''ve invested just twenty percent of my income and I am already a property owner!" boasts 27-yearold Ashwin Mehta, who works with a radio channel. <br /><br />Bank loans were once resorted to when buying articles with a heavy price tag. "But now, even if I am going on a holiday, I have the option of paying about eight hundred rupees for a few months instead of shelling out thirty thousand smackers up front. Monthly EMI''s are really affordable, it''s no big deal. But if I had to shell out all that cash at once, I''d be hand-tomouth for a while," explains 25-year-old Rajan Mukherjee, who''s just moved to the city and is financing his holiday to New Zealand with the EMI option. <br /><br />Bank official Nigel Olleary corroborates: "Conventionally, most thought of applying for a loan for high-end purchases, a lot of people take loans for purchases of appliances, electronics and even home repairs. Banks like ours help them out. While it''s no secret that the complete EMI amount, inclusive of the principle is much higher than the actual amount, that''s only in the case of expensive purchases. Most banks give out loans on small things like appliances and holidays at a zero per cent interest rate." <br /><br />But what is it that makes people veer towards the ubiquitous EMI? "Mobility is no longer looked down upon. People now understand that the west has been living beyond their means for a while and there''s nothing wrong in that," says S Varalakshmi, visiting professor of Sociology at Jai Hind college. <br /><br />"For people who are drawing good salaries, their monthly income exceeds their expenditure by a large margin. Additionally, people''s attitudes towards their finances have changed. No longer is money the sole definition of success," she adds. <br /><br />For many, EMIs are becoming increasingly important because it has made the concept of shelling out lumpsums of cash almost obsolete. "People now use plastic. It''s the same funda...when you have to deal with just one-tenth of the total price, why stress yourself out?" reasons 27-yearold Keerat Chaddha, yet another Mumbaiite revelling in the EMI boom. <br /><span style="" font-style:="" italic="">paras.tomar@timesgroup.com</span></div> </div>