Flipkart has introduced a new monthly instalment scheme that makes it easier for shoppers to buy premium products from electronics, home appliances and mobile phone categories without paying extra for processing or interest charges. Flipkart's "No Cost EMI" offers zero down-payment, zero processing fee and zero interest for customers on products priced Rs. 5,000 and above.
Flipkart has partnered with Bajaj Finserv for its No Cost EMI scheme, offering loan tenures ranging from 3 to 12 months. The EMI option is currently available only on Flipkart app, which is available as a free download on Android, iOS and Windows platforms, but the scheme is yet to be introduced on the Flipkart website.
"The innovative online financing option, a breakthrough in the consumer financing space, provides customers the opportunity to make shopping more affordable," Flipkart said in an official post on Tuesday. "Flipkart No Cost EMI is a first step towards making online shopping truly affordable for the masses and holds the potential to disrupt the online payment space."
Flipkart noted that less than one percent of the people have access to credit cards, which is essential to purchase products on EMI online through Flipkart or other e-commerce sites, and banks still haven't been able to tackle the major issues related to issuing small personal loans. Flipkart's new No Cost EMI comes as a major help to shoppers without a credit card or the patience to get a personal loan from banks.
However, there are certain riders with Flipkart's new EMI scheme, as it is currently available on select brands, such as Apple, LG, Vu, Panasonic, InFocus, and others. Another major limitation is that shoppers need to have a Bajaj Finserv EMI Card in order to convert product prices into monthly instalments.
Bajaj Finserv EMI Card holders can start shopping on Flipkart's mobile app. Products available for purchase under "No Cost EMI" have been marked as EMI Offer. Buyers need to check for the label of "No Cost EMI on Bajaj Finserv Cards" to avail the scheme. Buyers can select the EMI tenure before completing the transaction.
Shoppers can directly scroll to the bottom of the Flipkart app's homepage and tap on "Introducing No Cost EMI" to get the list of all the products under the scheme instead of having to sift through multiple pages.