 "Flipkart")
To push sales of big-ticket items such as expensive LED televisions and other electronics items, e-commerce major Flipkart has introduced a ‘No cost EMI’ financing option for buyers.
This move is targeted at making online shopping affordable for costlier purchases, with an option of equated monthly instalments where customers would not bear additional cost. "(This) 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," the company said.
The online giant has partnered with Bajaj Finserv and key brands to create this offering, presently available for select products and sellers. The offering comes with loan tenures starting three months and up to 12 months.
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"Less than one per cent of Indians have access to credit cards and the traditional banking sector 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," said Mayank Jain, senior director and head of digital & consumer financial services, Flipkart.
Getting access to small-size loans for shopping is very cumbersome for Indians, the company said. "The latest offering from Flipkart will definitely address this issue." This would, it added, be the first in a series of consumer finance offerings that Flipkart intends to launch over the year.
