How EMI Is Changing the Way India Shops During the Festive Season
Oct 2026
A ₹60,000 smartphone might seem expensive. But ₹5,000 a month? Suddenly, the purchase feels more manageable.
The price hasn't changed. The way the shopper considers it has.
This is becoming an important part of festive season EMI shopping in India. With household expenses rising, consumers are thinking more carefully about where their money goes. Yet the appetite for festive purchases hasn't disappeared.
Market Xcel's latest consumer study, India at an Inflection Point, found that 67% of households are more worried about money than they were a year ago, but 44% still plan to increase their festive spending.
For retailers, that presents an interesting situation. Consumers remain willing to buy, even when their finances are under pressure. And increasingly, the option to pay in instalments is influencing how they make those decisions.
Why EMI Shopping Is Gaining Ground in India
Festive sales have traditionally relied on discounts, cashback offers, and exchange deals to attract shoppers. Now, the payment options available at checkout are becoming an important part of the offer.
According to an October 2026 Times of India article, purchases made through no-cost EMI on Amazon rose from about 30% last year to 50% this year.
One reason is the rising cost of high-value products. The same article noted that average smartphone prices were around 15% higher than a year earlier, making even discounted devices relatively expensive.
These no-cost EMI shopping trends in India show why payment flexibility is becoming increasingly relevant during festive sales.
An EMI lets shoppers spread the expense over several months instead of paying the full amount upfront.
Consider a family replacing an old refrigerator during the festive season. They may have planned the purchase for months, but paying the full price at once could disrupt their household budget. Instalments let them move forward while keeping more money available for immediate expenses.
This doesn't make the refrigerator cheaper. It changes when the money leaves their account.
For households balancing several expenses at once, that flexibility can influence whether they go ahead with a purchase. This is one of the factors shaping festive season EMI shopping in India.
Festive Spending Continues, Even as Household Budgets Tighten
The growing use of EMIs becomes more interesting when viewed alongside the financial pressures Indian households are experiencing.
Market Xcel's India at an Inflection Point study surveyed 2,027 household financial decision-makers across four regions of India in July 2026.
The findings show how strongly rising everyday costs are affecting household finances.
72% said rising petrol and diesel prices were significantly or severely affecting their finances.
71% reported a similar impact from rising gold prices.
68% said higher food prices were affecting their budgets.
These pressures affect the money households can set aside for festive purchases. Fuel and groceries are recurring necessities, while gold is especially important during India's festive and wedding seasons.
Yet the research found that 44% still intended to spend more during the festive season compared with the previous year.
A household planning to increase its festive budget may still cut expenses elsewhere, postpone certain purchases, or find ways to spread payments.
The intention to spend more doesn't necessarily mean the household is financially comfortable. This relationship between consumer financial pressure and festive spending is key to understanding festive season EMI shopping in India.
For brands, this distinction is important. Festive demand may remain strong even when consumers are making difficult decisions about what they can afford.
How EMIs Are Influencing Purchase Decisions
EMIs have changed how some consumers assess expensive purchases.
Instead of concentrating only on the total cost, shoppers can evaluate whether a monthly payment fits their regular budget. This consumer preference for monthly instalment payments can make a purchase worth reconsidering, particularly when the product fulfils an immediate need.
Take two televisions with different specifications and prices. The higher-priced model may seem out of reach when viewed as a single payment. But when both are offered through instalments, the difference in monthly outgoings may appear small enough to consider an upgrade.
This is one way festive season EMI shopping in India can influence decisions in higher-value product categories.
Some shoppers may still prefer to pay upfront, while others may avoid taking on another financial commitment.
Existing loans, household expenses, and confidence about future income all influence whether an EMI is a practical option.
Consumers also need to consider the full repayment amount. Processing fees, interest conditions, and other charges can affect the actual cost of a purchase, including offers advertised as no-cost EMIs.
For brands and retailers, understanding how EMIs influence purchase decisions matters. Financing is one of several factors that can determine whether a consumer buys, upgrades, or waits
Not Every Big Purchase Is Happening This Festive Season
Market Xcel's India at an Inflection Point research also highlights another side of festive shopping: consumers postponing major purchases.
While some households use financing options to proceed with planned purchases, others choose to wait. Their decisions may depend on future discounts, price movements, or the need for greater flexibility in household budgets.
This is an important consideration when examining festive season EMI shopping in India. A delayed purchase doesn't always mean a consumer has lost interest in the product. They may still intend to buy, just not immediately.
For brands, the question is whether a consumer is unwilling to spend or simply waiting for a better time to buy.
Understanding this difference can help retailers plan campaigns beyond the festive season, especially in high-value categories where purchases require more financial consideration.
Why Smaller Purchases and Premium Products Are Both Finding Buyers
Another development during the festive sales 2026 period is the popularity of lower-priced products alongside continued demand for premium electronics.
The Times of India reported that products priced below ₹500 accounted for approximately half of festive e-commerce orders. Average order values were also 7–8% lower year-on-year.
These figures suggest shoppers are becoming more price-conscious. But the growing use of EMIs for higher-value purchases adds another dimension.
Consumers may be approaching different categories with different priorities.
Someone comfortable financing a new smartphone might still look for lower-priced gifts, clothing, or home accessories. Another shopper may decide that an expensive upgrade can wait, even while making several smaller festive purchases.
Households routinely prioritise some expenses over others, especially when money is tight.
This difference in consumer behaviour during festive sales in India is particularly relevant to festive season EMI shopping in India, where financing can remain attractive for selected purchases even as shoppers may cut back elsewhere.
For retailers, this means the same consumer may seek premium features in one category and the lowest possible price in another.
Brands cannot assume that choosing affordable products means someone has lost interest in higher-value purchases. Equally, a financed premium purchase should not automatically be taken as evidence of stronger consumer confidence.
What Brands Need to Understand About EMI-Driven Shopping
The growth of festive season EMI shopping in India gives brands another reason to look beyond headline sales figures.
A product purchased through instalments may reflect genuine preference, a planned upgrade, an attractive financing offer, or a combination of all three. Each motivation has different implications for pricing, communication, and future demand.
For marketers and retailers, a few questions deserve attention.
Does the availability of EMIs encourage consumers to purchase sooner than planned? Are shoppers choosing more expensive models because the monthly difference seems manageable? How much do existing financial commitments influence their willingness to make another purchase?
These questions help brands examine the EMI impact on consumer buying behaviour beyond the transaction itself.
Timing is also a factor.
A consumer who postpones a purchase during the festive season may still be interested in the product. The decision could depend on when they expect greater financial flexibility or whether a future offer better suits their budget.
Understanding these motivations can help brands make more informed decisions about product positioning, promotional offers, and campaign timing.
It can also prevent businesses from treating every purchase, or every decision not to buy, as a simple response to price.
Looking Beyond the Monthly Instalment
The growing popularity of festive season EMI shopping in India suggests changing household priorities, but it doesn't tell the whole story.
A shopper choosing instalments may be managing cash flow, purchasing something they have needed for months, or stretching their budget for a product they particularly want. Another consumer, facing similar expenses, may decide that taking on additional repayments isn't worthwhile.
Market Xcel's India at an Inflection Point: The Compressed Festive Season 2026 explores these household priorities through primary research, examining how financial pressures, spending intentions, and purchasing decisions are shaping India's festive market.
For brands, the question goes beyond whether consumers are willing to spend. It's about understanding what makes them comfortable enough to buy, and what makes them hold back.
Explore the full India at an Inflection Point report to understand the consumer differences and spending priorities influencing festive demand in India.
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