A family chooses EMIs to purchase expensive, essential assets like a home, car or laptop without exhausting their liquid savings. Dividing the large upfront cost into smaller monthly installments keeps household cash flows manageable.
Class 9 Social Science Part 2 All Chapters Solutions
Class 9 Social Science part 2 chapter 5 question answer
A family often opts for EMIs because paying a large lump sum upfront can deplete their emergency cash reserves. EMIs allow households to immediately access essential, high-value assets—such as houses, educational computers or vehicles—by spreading payments into predictable monthly installments. Families accept the extra interest cost as a trade-off for cash flow convenience and liquidity preservation.
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