Indian online retailer Flipkart has introduced a new monthly installments feature called No Cost EMI.
Read in Hindi
(CCM) — Targeting the middle class buyers of India, the e-retailer said that this step will make shopping for high-end items, like air conditioners, refrigerators, and LED televisions more convenient by promising customers no additional fees on EMIs (equated monthly installments). Using the No Cost EMI feature, customers will not have to pay any processing fees or interest on their purchase, and they will not have to provide a down payment. With the introduction of the No Cost EMI option, Flipkart is targeting specifically Indian consumers who dream of buying expensive household products but have been avoiding doing so due to the 8-16% interest rate.
Mayank Jain, Head of Digital Product and Consumer Financial Services at Flipkart, said in a statement, "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 [sic] shopping just like we did with Cash on Delivery a few years ago."
Flipkart has collaborated with Bajaj Finserv, a private sector financial service provider, to facilitate the offer for the customers. So far, the company has only made the plan available for its mobile app users. The option for desktop users will be introduced shortly, according to the company's statement on the new feature. The No Cost EMI service is available for select products and companies and comes with loan durations spanning from three to twelve months.
Photo: © Flipkart.