Online marketplace Flipkart has introduced a ‘No Cost EMI’ for its consumers in a bid to drive sales of its electronics and furniture category, which are high ticket size categories.
Calling it a simple and easy financing option, Flipkart says the move is targeted at making online shopping affordable for high ticket size purchases through an attractive financing option of equated monthly instalments (EMI) where customers won’t bear additional cost.
Flipkart’s No Cost EMI entails zero processing fee, zero down payment and zero interest for customers, the company said in a statement.
Unlike offline offerings, where customers need to make a down payment and pay a processing fee to avail of interest-free schemes, Flipkart’s offering has no such hidden costs. Flipkart has partnered with Bajaj Finserv and key brands to create this offering, which is available for select products and sellers for now. The offering comes with loan tenures starting from three months up to 12 months.
Mayank Jain, Senior Director and Head of Digital & Consumer Financial Services, Flipkart said, “Less than 1 per cent of Indians have access to credit cards, and the traditional banking industry has been slow in addressing the need for small personal loans. This is the first step towards making shopping truly affordable for masses online and brands have shown great enthusiasm to collaborate with us. This has the potential to disrupt online shopping just like we did with Cash on Delivery a few years ago”.
Getting access to small ticket loans for shopping needs is challenging and the process is often cumbersome for Indian consumers currently. The latest offering from Flipkart will definitely address this issue and will enable shoppers to make their purchases on easy EMIs with a seamless online experience.
This is the first in a series of consumer finance offerings that Flipkart intends to launch over the course of the year. Together with existing programmes such as product exchange and assured buy-back, Flipkart is gearing to be the most affordable shopping destination for Indian consumers.