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@article{178538,
        author = {JAMSHID VP and E K Hamamali},
        title = {The Influence of EMI Payment Options on Consumer Spending Behaviour: A Study in Kozhikode District, Kerala},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {12},
        pages = {3893-3898},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=178538},
        abstract = {The increasing prevalence of Equated Monthly Instalment (EMI) payment systems has significantly reshaped consumer spending behaviour, particularly in urban and semi-urban regions such as Kozhikode District in Kerala, India. This study explores the impact of EMI options on consumer purchasing decisions, with a particular focus on the variations across demographic segments. By examining the adoption and utilization of EMI schemes across diverse product categories—including electronics, home appliances, furniture, and services—the research identifies key factors influencing consumers' preference for EMI over traditional payment methods.
A mixed-methods approach was employed, combining qualitative insights with quantitative data collected through structured surveys administered to 100 consumers in Kozhikode who had used EMI options within the past year. The study investigates psychological determinants such as perceived affordability, financial planning behaviour, and aspirational buying tendencies. It also evaluates the role of promotional strategies by retailers and financial institutions, such as zero-interest offers, minimal down payments, and extended repayment terms, in encouraging EMI adoption.
The findings reveal a strong correlation between the availability of EMI facilities and increased consumer spending, particularly among younger consumers (aged 18–35) and those within the middle-income group. EMI schemes appear to enhance perceived financial flexibility, enabling consumers to acquire products that might otherwise be out of reach. However, concerns related to long-term financial obligations, interest burdens, and the potential risk of indebtedness were also evident. Despite these risks, EMI options are often perceived as a practical tool for managing short-term liquidity amid rising living costs and income volatility.
This research contributes to the broader discourse on consumer behaviour in the digital payment ecosystem and offers actionable insights for businesses, financial institutions, and policymakers. The study underscores the necessity of transparent EMI policies and advocates for enhanced financial literacy initiatives to support responsible borrowing. Furthermore, it highlights the dual nature of EMI schemes—as facilitators of consumer access and as potential financial liabilities—thus calling for a balanced approach to EMI promotion and regulation},
        keywords = {EMI (Equated Monthly Instalment), Consumer Behaviour, Kozhikode District, Financial Planning},
        month = {May},
        }