Swipe Now, Weep Later

There used to be a time when pride was not gauged in terms of smartphones, two wheelers or four wheels, but in terms of how soon you would pay back what you borrowed, if you ever bothered borrowing anything. Earlier, people would wait for years before buying or renovating their homes or even buying a new cycle or a scooter, because debt was seen as both fiscal burden as well as social shame.

Fast forward to today, and we are in the era of no-cost EMIs, a watchword as smooth as the Srinagar’s roads, but with potholes the size of Dal Lake’s hidden underneath.

Walk into any electronics shop in city centre, and there it is, a catchy label “ Grab a Cell-Phone in 10 Easy Instalments at No Extra Cost!” Suddenly, an I phone’s newest launch of 17 Series does not feel like a luxury anymore but rather like a cup of Kahw’i Daam; cheap, comfortable and attainable.

On paper, a free EMI is like a wazwan platter: you get to eat the feast now, pay later, and allegedly without additional spice of interest. But much like wazwan, there’s always more in the kitchen going on than you see.

Financial records support this craze, in 2023 alone, Reserve Bank of India records show consumer durable loans, including no-cost EMI schemes, increased more than 12%. In cities all over India, a quarter of every urban consumer has availed of an EMI scheme to purchase mobiles or appliances. And in Kashmir, too, there are homes where every month’s budget now accommodates “Easy Instalments” for I phones, TV sets, and even kitchen appliances.

But let us hold on. Kashmir’s kinship for credit was never so relaxed. Debts in the old days were either seasonal, linked with harvests or very personal, such as a neighbour advancing money for a daughter’s wedding. These were not transactions faceless but trusts sealed, at times, over a cup of Noon Chai. A borrower defaulted once, and the entire “Gaam o Shaher” was informed by sundown.

Now look at today’s EMIs. Current lender is not your neighbour who will understand your situation or take your hen in return. It’s a bank or fin-tech firm that sends SMS reminders sharper than a butcher’s knife. You dare to miss an instalment, and you don’t just lose face; you gain penalties, lower credit scores, and an entry into databases that never forget.

Here’s the catch. No-cost EMI is never really free. These entities typically pull three tricks:

1. Discount Disguise: Rather than offering you a straight discount, they raises the price and disguise it under the robe of “no interest.”
2. Processing Fees: These entities hike “one-time” charges that silently gobble up the savings.
3. Lost Bargains: These entities male you to Pay through EMI’s, so that you lose that bargaining chip.

In a nutshell, you’re shelling out for the luxury of paying later. Or as I may put it in common terminology, “It’s like taking a horse across Dal lake when you could have walked across the foreshore road.”

In an area where families boasted about saving for rainy days (and admit it, it rains frequently here), we now use credit cards to purchase refrigerators or deep freezers that will keep vegetables cool for winters we no longer prepare for fully.

A 2023 survey of the Centre for Monitoring Indian Economy (CMIE) discovered that close to 32% of the urban households of J&K possessed some sort of retail loan, a statistic unimaginable two decades ago. Financial Institutions have successfully pushed markets with “instant finance” kiosks like we had earlier seen in case of prepaid sims. The message is pretty clear: why wait, when you can get what you want on a simple swipe?

For some of the young Kashmiris, EMIs are a badge of autonomy to indulge in life’s goodies “NOW” instead of “LATER”. For the old generations, it’s a flirtation with danger, an abandonment of the Valley’s cultural heritage of saving first.

Imagine explaining to your great grandfather that currently we purchase refrigerators, motorcycles, and even kitchen appliances on instalments. He’d laugh so hard that he’d choke on the harissa. But the punchline has a repulsive twist when young couples, tempted by “no charge” offers, realize they are balancing ten or nine concurrent EMIs with scarce space left for emergencies. We’ve all heard stories, a friend defaulting on a Scooty Loans and suddenly being treated like “CXOOR” in all social circles. Except this time, it isn’t gossip that ruins you; it’s your CIBIL score.

Always remember, in Kashmir, debt has always been heavy, use it sparingly, for essentials, not just status symbols. Always compare upfront payment discounts prior to selecting any kind of EMIs whether with or without interest. And the valley’s cultural acumen still holds good, spend only what you can, borrow what you have to, and never equate ease with free lunch. Kashmir is changing, from the construction of houses to the purchase of smartphones. EMIs are here to stay, yet the “no-cost” romance has lessons bitter than the bite of a chilly December morning.

And as for me, each time I see those no-cost EMI billboards, I remember my “Bugwaer” (Piggy bank). It had no label, no micro prints, and no processing fees, just discipline, patience, and pride. Maybe that’s the actual no-cost offer we’ve lost sight of.

Until we recall it, we’ll just be swiping now… and weeping later.

 Mirza Mohammad Idrees ul Haq Beigh is an Engineer, IP strategist, registered with Indian Institute of corporate affairs as an Independent director.