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Selling phones on EMI: 7 ways retailers can reduce defaults

Selling phones on EMI brings in customers who could never pay the full price at once. But every missed installment hurts: your money is stuck, your staff spend hours chasing, and some retailers stop offering EMI altogether. Here are seven practical ways to keep EMI sales growing while keeping defaults down.

1. Know your customer properly

Collect correct details at the time of sale: a verified mobile number, address, ID and an alternate contact. Call the number once at the counter to confirm it works. Most "untraceable" customers are simply customers whose details were never checked.

2. Match the EMI to the customer's income

A customer earning a daily wage may struggle with a large monthly EMI but manage a smaller one over a longer period. Suggest a plan they can actually pay. A slightly smaller sale that gets fully paid beats a big sale that defaults.

3. Explain the terms clearly and in writing

Tell the customer, in simple words, the EMI amount, due dates, late charges and what happens if payments are missed. Give it in writing and get their signature. Clear terms prevent arguments later and protect you.

4. Send reminders before the due date

Many missed payments are simply forgotten payments. A friendly WhatsApp message two or three days before the due date, and again on the day, prevents a large share of late payments.

5. Make paying easy

Accept UPI, share a payment QR code on WhatsApp, and confirm receipt immediately. Every extra step makes it easier for the customer to delay.

6. Track every account in one place

A notebook or scattered WhatsApp chats make it easy to lose track. Keep one list of every EMI customer, what is due, what is paid and what is overdue, and check it daily.

7. Protect the device, and use it responsibly

Device-lock software such as EMI Locker lets a retailer lock a financed phone when a payment is overdue and unlock it the moment the customer pays. Used fairly, it is a strong reason for customers to pay on time, and a strong reason for you to offer EMI with confidence.

Responsible use matters:

  • The customer must be told and must agree at the time of purchase.
  • Emergency calls must always keep working on a locked phone.
  • The lock screen should clearly say who to contact and how to pay.
  • Unlock promptly once payment is made.
  • Follow applicable laws and RBI guidance on fair recovery practices, and never harass or shame customers.

The bottom line

EMI is one of the best ways to grow phone sales, as long as you choose customers carefully, make paying easy, remind early and protect the device fairly. Want to see how device-lock protection works on a real phone? Book a free EMI Locker demo.

Keyzone Software

We build SaaS products and custom software, apps and AI tools for Indian businesses, from Mawana, Meerut. About us

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