Flipkart introduces online ‘No Cost EMI’ option
E-commerce major Flipkart on Tuesday introduced “No Cost EMI” option to make online shopping affordable for high-end purchases through an attractive financing option of Equated Monthly Installments (EMI) where customers will not bear additional cost.
Flipkart’s “No Cost EMI” entails zero processing fee, zero down payment and zero interest for customers.
“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,” said Mayank Jain, head of digital and consumer financial services, Flipkart, in a statement.
With the introduction of “No Cost EMI” option, Flipkart aims to enable more people to get access to products they aspire for.
Senior VP-Product of Flipkart, Surojit Chatterjee said, “According to our surveys, consumers are willing to pay more over time for essential things. And in this case, it’s not credit as such because there are no fees or interest. In the three weeks that we’ve launched the no-cost EMIs, we’ve seen customers have upgraded their purchases because of it. We’re thinking of affordability as an overall problem to solve. We will come at this problem from different angles.”
“We think of customer experience from an end-to-end perspective. When a customer is buying a phone or a home appliance, they also want to buy (phone) connections, warranties and other things that can be done digitally. So, we’re looking at how we can give customers an end-to-end experience on Flipkart so that they don’t have to go elsewhere. We’ll launch more digital products to make the end-to-experience better and make products more affordable,” Chatterjee added.
The company 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.