📱 taken a phone on loan? Pay emi on time or your handset could be locked
With the rising trend of buy-now-pay-later and phone loans, many consumers are enjoying the convenience of getting the latest smartphones without paying upfront. However, the reserve bank of india (rbi) has issued warnings about a new feature lenders are using: phones can now be locked if emis are not paid on time. Here’s what you need to know.
🔒 1. How phone locking works
Some lenders pre-install apps on the phone purchased on loan:
These apps monitor emi payments
If a borrower defaults on payment, the app can remotely lock the handset
The phone remains unusable until the pending emi is cleared
This acts as a security mechanism for lenders to ensure timely payments.
⏳ 2. Importance of timely emi payment
Paying emis on time is more important than ever:
Avoid your phone being rendered unusable
Prevent penalty charges and late fees
Maintain a good credit score for future loans and credit cards
📲 3. Tips to avoid phone locking
Set up auto-debit from your bank account to ensure emis are paid on time
Keep track of due dates in your phone calendar
Notify the lender immediately in case of payment issues
Read the loan agreement carefully to understand the lender’s terms
💡 4. Why lenders are doing this
Secures the investment in expensive smartphones
Reduces risk of default
Encourages borrowers to prioritize emis over other expenses
For consumers, it’s a reminder that borrowed money comes with responsibilities.
✅ 5. Key takeaway
Phones on loan are a great convenience, but borrowers must pay emis on time to avoid getting locked out of their device. With apps monitoring payments and rbi regulations supporting lenders, staying organized with your emis is now more crucial than ever.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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