No-cost EMI: Making luxury furniture affordable for all

Diverse furniture designs can revolutionise living spaces and work environments. But although the demand for these cutting-edge designs is on the rise in personal and professional spheres, financial constraints often hinder immediate purchases. 

However, dream furniture choices worth lakhs can now be delivered to your doorstep without the need for an immediate upfront payment as leading furniture companies across the country are allowing customers to acquire their favourite furniture with flexible payment options spanning six to 36-month periods — all without incurring interest.

This hassle-free facility is accessible through the credit cards of most banks. The trend among popular furniture companies is steadily on the rise, with an increasing adoption of EMI (Equated Monthly Instalment) plans.

When a purchase is made through a credit card (EMI), the credit card company promptly pays the full product price to the merchant. Subsequently, the buyer repays the bank in equal monthly instalments, with fixed payment durations of 6, 12, 24, or 36 months.

Buyers can choose the repayment period that suits them best, and the corresponding monthly instalment amount is determined accordingly. Notably, leading furniture companies in the country do not impose any additional interest on the instalments. 

Prominent furniture companies HATIL, Regal Furniture, Brothers Furniture, Otobi, Partex, Nadia, Navana Furniture, Athena's Furniture, Unique, Bitopi, Woodies Bd, Trance Furniture, Nurjahan and Akhtar Furniture are currently offering this facility.

According to Selim H Rahman, president of the Bangladesh Furniture Industry Owners Association, companies strive for high demand in the market, employing various offers to sell more products, especially for furniture, which is considered a long-term investment.

Rahman, also the managing director and chairman of HATIL, notes that traditionally, customers contemplate furniture purchases for a few days, saving from household expenses to make such investments. However, with the EMI facility, customers can immediately pay the product cost through the bank and repay in monthly instalments over fixed periods, which is convenient and flexible.

Md Abdullah Al-Masud, Unit Head of Zip and QR Management at Eastern Bank, explains that their cardholders can utilise EMI for any POS transaction within a short period. Customers are typically interest-free for up to 45 days. And with EMI on EBL cards, they can extend payments from three to 36 months without interest.

Al-Masud highlights the bank's efforts to create connections with merchants, enabling EMI services and charging merchants for referring bank customers.

A representative from another private bank's card division explains that extra charges are deducted from furniture companies for EMI services, creating a win-win situation. Despite potential increases in the cost of goods, the banker notes the promotional benefits for businesses and the expansion of market demand.

Selim H Rahman shared with TBS that they offer an EMI facility in collaboration with 23 banks. The list of banks with which HATIL has agreements is charted out on their website. Customers can purchase any HATIL product using the credit cards of these banks.

"We specialise in crafting modern and simple furniture, catering to the evolving trend of smaller homes and plots. The demand for straightforward, space-efficient furniture is on the rise, and HATIL's products address this need," he added. 

"The ease of maintenance and the perception that these products make rooms appear more spacious contribute to their popularity, particularly in households where both spouses work," Rahman also said.

Regal Furniture provides an EMI facility through agreements with 19 banks, allowing customers to utilise EMI options with their credit cards. 

"Customers purchasing products and settling the payment within 6 months can enjoy a 0% interest rate, with a minimum purchase requirement of Tk5000," explained Kamruzzaman Kamal, the director of Marketing at Regal Furniture.

Kamal further discussed the changing dynamics of the furniture market, noting a shift from local, neighbourhood-made furniture to branded products. These branded items, characterised by superior quality, finishing, design, and aesthetics, have gained traction in both the domestic and international markets. The availability of reasonably priced furniture, manufactured on a large scale within the country, has fueled the demand for serialised furniture.

While there are export opportunities for furniture companies, Kamal acknowledged challenges, such as the prices of imported materials and accessories, coupled with high duty taxes. Despite these hurdles, the EMI option has proven to be beneficial for customers, making furniture purchases more manageable.