Should you rent furniture or buy it on EMI?

Should you rent furniture or but it on EMI

Furniture at your home is not just another collection of inanimate objects that embellish the place you live in, it is one among the factors that add meaning to the phrase ‘feel like home’. Four walls of bricks in a room can just create a ‘surrounding’, furniture creates an environment that you like living in. When you look at the picture of a recliner online, you automatically see yourself sitting on it in your living room. Buying furniture involves emotions. It may not be that apparent, but it does.

When you finally decide on buying something but are short on cash, you see two options — Rent or EMI. The inevitable question arises, should you rent furniture or buy it on EMI? You don’t need to cross out EMI as an option just because you don’t own a credit card. You can buy it on EMI without credit card. At Finomena, we provide loan for furniture and products from other categories like Electronic Appliances, Laptops and Mobile Phones.

While the furniture rental options that are available, easily seem to be light on your pocket and a win-win deal, but buying furniture on EMI makes way more sense. If you just sit and do the basic maths, you realize the same.

Let’s talk numbers – Furniture on rent vs furniture on EMI!

furniture on rent or on EMI

If you analyse the deals that furniture rental stores available online offer, you will end up with a calculation similar to the following:

Say you decide on renting a bed worth Rs. 10000, for 12 months. You need to pay ~ Rs. 450/month summing up to Rs. 5400 at the end of the tenure. If the same bed was on EMI, you would pay a down-payment of around Rs. 2000 and installment of Rs. 750/month summing up to Rs. 11000 approx. Now, if you’re worried about the down payment which you’ll have to pay if you go for EMI, note that you would also have to pay a ‘Security Deposit’ if you went for rent.

At the end of the 12 months, you would have paid around Rs. 5500 towards rent, all for nothing. But, if you had chosen EMI as an option, you’d own the product. You decide what’s better — Rs. 5400 for nothing, or Rs. 11000 for what you’d own forever? If this amount difference looks big, just check out the amounts you would pay monthly. More or less the same, right? This becomes more interesting if you rent it for a longer tenure. You can end up paying more than the actual price, and what is left with you at the end? – The bedroom floor.

What if you move to a new city and plan to stay for just a few months? Let’s assume you moved to a city for three months and bought the bed on EMIs. You paid around Rs. 10000 in three months. When you’re planning to move out, you can easily post an ad on the websites where you sell used goods, and sell it for around Rs. 7000. It will be a good deal and you will find buyers. No hassle! These websites now even provide ‘Pick & Deliver’ options. On rent, you will have to pay a much higher amount per month for such a short tenure. And there are good chances that this amount in total is higher than what you would lose on the actual price while selling the bed. ‘Who would buy a used bed?’, you ask? Wait! Were you just about to decide on renting a used bed?

Don’t fall for the bait!

loan for furniture

There’s no denying the fact that the monthly amount you see below the products available for rent, is tempting. It feels like free! But, a cheaper deal is not always the better one. You see how a fifth grader’s maths proves the same? Also, when you say ‘How cheap!’, it’s a negative comment more often than not. Just saying.

At Finomena, you can get loan for furniture on flexible monthly installments without credit card. What’s more? We believe in taking the back seat and handing over the steering to you. You decide the tenure and EMIs you wish to pay. Go beyond renting, own stuff! Dare to dream.

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