No-frills airline SpiceJet on Thursday launched a new scheme, which enables its customers to pay ticket fare in equated monthly instalments (EMIs).

The EMIs can be spread over a period of 3, 6, 9 or 12 months, according to convenience of customers. The interest rate charged for this facility will range from 12 to 14%.

The offer will result in significant savings to the passengers (up to 70% interest cost reduction) on deferred/delayed payment interest costs relative to traditional credit card fees, SpiceJet said in a release.

"For a ticket costing Rs 5,000, this scheme can result in savings of over Rs 1,000 in terms of interest charges relative to credit cards for a 12-month deferred payment plan," SpiceJet said.

For now, the 'Book Now, Pay Later' scheme will be applicable to customers holding credit cards of Axis Bank, HSBC Bank, Kotak Bank, and Standard Chartered Bank.

However, the airline plans to extend the facility to credit cards holders of other banks shortly.

"Providing customer convenience and enhancing options through unique travel schemes and offers are central to SpiceJet's philosophy. We are confident that this scheme will make air travel more economically-viable than ever before for those customers who want to travel now, but pay later," said SpiceJet's Chief Marketing Officer Debojo Maharshi.

The facility will be available for those, who will book tickets through SpiceJet website.

In case of airfare refunds, customers will have to bear the costs of the interest rate already billed for that particular booking, it said.