What does '10/2 scheme' mean in consumer loans?

A 10/2 scheme means the total tenure of the loan is 10 months, but you have to pay 2 EMIs in advance as a down payment at the time of purchase. You will only pay the remaining 8 EMIs over the next 8 months.

Does paying an advance EMI save me interest?

Yes, mathematically. Because you are paying a chunk of the product's price upfront, the bank is actually financing a smaller loan amount for you. Interest is only charged on this smaller disbursed amount.

Advance EMI Calculator

Consumer durable loans often require 1 or 2 EMIs in advance. Calculate your exact EMI, upfront payment, and total interest for these structured retail loans.

＋Equis / Retail Analytics

FORM ADV · REV. 01

Product Price

Cost of TV, AC, etc.

₹

Interest Rate

Total Tenure

Months

Advance EMIs

EMIs paid at checkout

EMIs

Retail Math

Actual Loan Disbursed₹41,089

Total Interest Paid₹3,466

Upfront Payment (At Store)₹8,911

Monthly EMI Thereafter₹4,455

How it works

You are buying a product worth ₹50,000. You will pay ₹8,911 at the store today (2 EMIs).

The bank will finance the remaining ₹41,089. You will pay the remaining 10 EMIs of ₹4,455 over the next 10 months.