Zero-cost EMIs are back this festive season! Here are the details
Advertisement
In a bid to attract more buyers this festive season, brick-and-mortar stores and online marketplaces are going to offer zero-cost EMIs.
Yes, after three years, the banks, offline and online marketplaces have brought back the zero EMI option, but with some tweaks.
In a bid to adhere toReserve Bank of India 's (RBI) regulations, the EMI option has got a bit of re-structuring.
Now, the amount due as interest to banks will be offered as a discount to consumers and consumers won't have to pay processing fees, convenience fees or any other charges.
This means, you can buy any item at zero EMI and the retailers, e-commerce sellers or the brands will shoulder the interest burden.
Flipkart and the Future Group have already rolled out the zero-cost EMI scheme in association with State Bank of India, ICICI Bank, HDFC Bank, Axis Bank , Citibank and HSBC .
The move will not only push sales during the festive season, banks will also witness rise in retail loan growth.
As per the RBI, loans expanded 7.7% in the April-July 22 period compared with 8.2% a year earlier, pulled down by a mere 0.6% growth in industry credit.
"Consumers are not just buying more, but even premium products. Their shopping list ranges from consumer electronics to furniture, fashion to even food and grocery. We will extend it to other group formats,” Vinay Bhatia, Future Group's CEO - group loyalty and analytics, told ET.
Flipkart is rolling out the offer for transactions valued at more than Rs 4,000, with payments to be made over six, nine or 12 months.
Advertisement
Yes, after three years, the banks, offline and online marketplaces have brought back the zero EMI option, but with some tweaks.
In a bid to adhere to
Now, the amount due as interest to banks will be offered as a discount to consumers and consumers won't have to pay processing fees, convenience fees or any other charges.
This means, you can buy any item at zero EMI and the retailers, e-commerce sellers or the brands will shoulder the interest burden.
Advertisement
The move will not only push sales during the festive season, banks will also witness rise in retail loan growth.
As per the RBI, loans expanded 7.7% in the April-July 22 period compared with 8.2% a year earlier, pulled down by a mere 0.6% growth in industry credit.
"Consumers are not just buying more, but even premium products. Their shopping list ranges from consumer electronics to furniture, fashion to even food and grocery. We will extend it to other group formats,” Vinay Bhatia, Future Group's CEO - group loyalty and analytics, told ET.
Flipkart is rolling out the offer for transactions valued at more than Rs 4,000, with payments to be made over six, nine or 12 months.
Advertisement
(Image: Thinkstock)Advertisement
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- Vegetable prices to remain high until June due to above-normal temperature
- RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P
- 'Vote and have free butter dosa': Bengaluru eateries do their bit to increase voter turnout
- Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check
- Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market