Smartphone Financing In India Averages 10 Months As Tier 2 Cities Lead EMI-Based Purchases: Report

New Delhi, Aug 10: Smartphone financing tenure in India averaged 10 months in Q2 2026, with Tier 2 cities emerging as the most financing-driven market where EMI plans accounted for 57.5 per cent of purchases, a report said on Monday.

The report from Counterpoint Research said NBFCs are offering a wider range of EMI tenures to suit different consumer budgets and that Tier 3 and smaller markets also maintained penetration levels above 50 per cent.

Amid lower financing penetration in online channels, overall smartphone financing is expected to account for 42 per cent of total smartphone sales in India in 2026.

Apple recorded the highest average financing tenure among smartphone brands at 17.2 months, while Samsung remained the leading brand in terms of smartphone units sold through financing, followed by vivo and Apple.

The report forecasted that financing is expected to account for over half of smartphone sales in India’s mainline channels, driven by strong NBFC-led affordability programmes.

"However, India’s smartphone financing ecosystem continued to evolve in Q2 2026 as brands increasingly focus on improving affordability through more flexible repayment structures," the report said.

Apple's high average financing tenure reflected the growing use of longer-tenure financing to lower monthly ownership costs and support upgrades to higher-value devices, the firm said.

“The role of smartphone financing is all about making monthly ownership more affordable. Consumers today are increasingly looking at how much they need to pay every month rather than focusing solely on the device’s upfront price," said Research Director at Counterpoint Research, Tarun Pathak.

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“Brands and financing partners are introducing more flexible financing programmes, including EMI plans extending up to 30 months, to keep monthly payments affordable and make premium smartphones accessible to a wider consumer base,” Pathak added.

The growth is driven by the expanding reach of NBFC financing in non-metro markets, rising consumer aspirations to upgrade to higher-value smartphones, and the availability of more flexible affordability programmes from brands and retail partners.

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