With an aim to make high-end products more affordable to consumers, e-commerce giant Flipkart, in partnership with Bajaj Finserv on Tuesday announced the introduction of "No Cost EMI" – an option that allows consumers to buy a select range of electronic goods with no additional cost attached to Equated Monthly Installments (EMI).
"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, head of digital and consumer financial services, Flipkart, reported Business Today.
According to reports, there will be zero processing fee, zero down payment and no interest will be charged on the installments. This is unlike offline schemes, where customers are required to make a down payment and also pay an additional processing fee, in order to get the benefit of interest-free schemes.
The loan tenures currently range from three to 12 months.