In a bid to better the overall customer experience on its platform. Flipkart has today introduced a simple and easy financing option for its online buyers — ‘No Cost EMI’. Under this option, customers can buy high-cost products on Flipkart through EMI with zero processing fee, zero down payment, and zero interest.
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 an additional cost.
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.
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.
Despite the explosive growth in e-commerce in India over past few years, India still has a majority population which prefers offline shopping to online shopping. And e-commerce companies in India are coming up with various options to attract Indian consumers online.
These options include cash on delivery, easy returns, fast delivery, and guarantee of original products. The new offering of Flipkart geared towards high ticket size purchases may further propel many new customers to shop online as well as encourage existing customers to make high-cost purchases through online medium.