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Loan against Smartphones - Can it be a reality ?
IN the recent years, mobile phones have clad to be one in all the foremost effective inventions by men. Today, its hard to own religion in life whereas not a mobile in hand. sensible phones have given fully completely different meaning to most of the activities currently, be in banking, travelling, personal maintenance, keeping connected therefore on. All reasonably companies unit arising with mobile apps to maneuver their operations and reach to customers through sensible phones.
From the earlier years where the phones used to price some of thousands they have become way more smarter, refined and to boot expensive. There unit certain brands of phones that became standing symbols and products of aspiration.
Some flagships phones like Apple iphones Samsung galaxy S series, HTC One series price equivalent to value|the worth|the value} of a a pair of wheeler like bike or a price of trip for a family. For that matter, a social class family can setup their zero in an exceedingly worth of 1 flagship phone. to convey a perspective, any of these phones price quite bureau fifty,000/- and many of bikes from Honda, Hero, Suzuki, TVS to boot price identical. Similarly, a thirty 2 in. TV (INR fifteen,000) and associate washing machine (INR 10,000), a white goods (INR 10,000), a mixer grinder (INR 2,000), a theater system (INR half-dozen,000) and a pill (INR seven,000) would total up and build a worth of one flagship smartphone.
Innovation in Finance
Understanding the upper than market dynamics and thus the purchasers aspirations in mind, the banks to boot jumped into the craze of smartphones and have return up with EMI schemes to finance these phones. and since the statistics reveal, they are doing an honest business during this.
With the type of amount spent to buy for these high end phones, they are just about nearly as good because the alternative electronic and. which i feel it’s time for the banks to be a great deal of innovative and look at finance against these phones. The mobile companies like Apple have already got redemption schemes in place for his or her older phones. among the market, these phones command sensible sell value for the initial one – one ½ years of their life.
Benefits and choices of the product:
Banks can work on a product for Loan against Smartphones. it's going to have following blessings and features:
- Immediate liquidity to the patron
- Short term credit extension by bank
- relatively safer then unsecured personal loans
- foot-dragging with mobile and medium companies for rolling out innovative product
- Short term disposition for say 2-6 months
- money are going to be paid by the consumer in EMIs
- The loan are going to be on rolling basis, reckoning on the current condition and current terms of the phone
Safety and Security Precautions by Bank
There unit certain inherent risks whereas considering mobiles as associate asset:
- Mobiles being daily use things, they are very at risk of damages.
- Market is flooded with fakes.
- consumer commerce off the mobile or achievement whereas not paying the money
Though these risks exist in giving loan against smartphone product, most of these risks unit common to providing EMI for phone purchase well. Risk of fake mobile are going to be quenched by correct validation of IMEI no and validation by the manufacturer. Risk of damage are going to be quenched by insurance and different such steps are going to be taken by Banks to insulate themselves from risks.
Conclusion
The higher than thoughts may merely be an honest arrange on paper presently, but dynamic market and consumer preferences do play a heavy role for the banks to create a choice on the merchandise on giving. Overall, it becomes imperative for the banks to launch product by keeping market trends in mind. These may sound to be risky or non-profitable at the beginning, but merely may end up giving sensible volumes and profits to the banks.
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