Mobile retailers urge brands to scrap zero-cost EMIs to cut handset prices

AIMRA has asked Samsung, Apple, Xiaomi, Vivo, Oppo and Realme to replace zero-cost EMIs with interest-bearing loans, saying 17–19% OEM subvention costs inflate handset prices. It estimates loan approvals could rise to 75% from below 50% with tenures of up to 48 months.

— Source publishedSat, 1 Aug, 2026, 00:03 IST·First seen Sat, 1 Aug, 2026, 00:16 IST·Source ET Small Business

What happened

All India Mobile Retailers Association (AIMRA) · AIMRA has urged major smartphone brands to replace zero-cost EMI schemes with interest-bearing consumer loans,

Key facts

  • Zero-cost EMI subvention costs OEMs 17-19% of product price
  • Financing approval rates could rise to 75% from below 50%
  • Proposed consumer-loan tenures of up to 48 months

Why this matters

Explore partnerships with lenders, fintechs and retail associations that can deliver higher approval rates and 48-month financing while preserving competitive affordability without OEM subsidy expense.

What to watch

  • Formal OEM responses or changes to zero-cost EMI availability from Samsung, Apple, Xiaomi, Vivo, Oppo and Realme.
  • Visible reductions in handset MRPs or street prices following any EMI-policy change.
  • Share of smartphone sales financed through zero-cost EMI versus interest-bearing consumer loans.
  • Loan approval rates, average tenure, down-payment requirements and delinquency trends for handset finance.
  • RBI, bank or NBFC actions affecting unsecured consumer-credit underwriting, digital lending or long-tenure small-ticket loans.
  • Festival-season promotional calendars and whether zero-cost EMI remains a headline offer.
  • Offline retailer footfall and conversion rates relative to e-commerce platforms offering subsidized card EMI.
  • OEMs test lower sticker prices paired with bank/NBFC interest-bearing EMI offers, especially in offline retail channels.
  • Retail chains promote monthly-payment affordability rather than zero-interest messaging and push 36- to 48-month tenures.
  • Banks, NBFCs and fintech lenders compete for handset-originated loans through faster approvals, lower down payments and bundled protection products.
  • Brands concentrate zero-cost EMI subsidies around festive sales, flagship launches, premium models and co-branded card partnerships.
  • Retailers use lower upfront prices to upsell accessories, protection plans, trade-ins and extended warranties, partly replacing lost financing-related conversion support.
  • Online marketplaces and large-format retailers may gain negotiating leverage if they can secure exclusive financing terms that smaller mobile stores cannot match.

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