Flipkart has introduced ‘No Cost EMI’, a simple and easy financing option for its online buyers. This move is targeted towards making online shopping affordable for high ticket size purchases through an attractive financing option of Equated Monthly Installments (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. Unlike offline offerings, where customers need to make a down payment and pay a processing fee to avail 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 3 months up to 12 months.
Mayank Jain, Senior Director and Head of Digital & Consumer Financial services, Flipkart says, “Less than 1% 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 very 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.
Solving fundamental problems in e-commerce has been the DNA of Flipkart wherein the company has created solutions around key needs of Indian consumers. With the introduction of No Cost EMI, Flipkart has enabled more people to get access to products they aspire for. 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 programs like product exchange and assured buy-back, Flipkart is gearing to be the most affordable shopping destination for Indian consumers.