Flipkart Will Give Rs 60,000 Credit Line For Online Shopping – Buy Now, Pay Later!
Flipkart may soon apply for NBFC License as well, for giving out loans.
In a first of its kind move, Made in India ecommerce portal Flipkart has announced the launch of credit line for its consumers.
Now, online shoppers can get upto Rs 60,000 credit for shopping online, which they can pay later.
How does this work? Keep reading to find out the details!
Credit Line Launched By Flipkart: Buy Now, Pay Later!
Walmart owned Flipkart has come out with a unique financial plan, to aid more shopping on its platform.
Users of Flipkart can now apply for a credit line upto Rs 60,000. This means that they can shop for products now, and then pay the amount later.
Since festive season is round the corner, and ecommerce market is about to enter its peak season, this new credit line offer is surely well-timed move by Flipkart.
Who Will Benefit From This New Scheme?
Approximately 45 million Flipkart customers don’t have a traditional credit facility (credit cards mainly), and they use cash on delivery or debit cards while shopping.
This new offer of extending Rs 60,000 credit line will target these customers, who often restrict themselves from shopping more, due to this lack of credit.
How Will It Work?
Based on purchase history, and relationship with Flipkart, a credit line will be allocated to the customers, whose limit shall be Rs 60,000.
Not everyone will be able to get Rs 60,000 limit, which is the maximum. Some may get credit line of Rs 5000, and some may get Rs 50,000.
Now, when that customer orders the product online via Flipkart, they can use the credit line, and opt for paying later.
Each limit will be assigned a payback time period, within which the user will have to repay the amount. The repayment can be done via EMIs or a lumpsum payment.
The whole process will work just like credit cards: But instead of any banks issuing credit limit, here Flipkart will offering the same.
Flipkart’s Next Fintech Goals?
As per Ravi Garikipati, head of fintech division at Flipkart, they are planning a major expansion into fintech niche, in the coming months.
Ravi said, “The idea is work with insurers and co-create and manufacture products that do not exist in the market. It’s about working with a few strategic partners in the insurance industry,”
Offering credit line for consumers is the start, which will now extend to offering direct loans to sellers and vendors, and then offering insurance products as well. For loans, Flipkart may apply for NBFC (non-banking financial company) licence, very soon.
Flipkart was the first to launch an EMI option on debit cards, which was again a new, and innovative strategy to tap the online shopper.
Interestingly, Flipkart’s announcement of offering credit line comes a day after Amazon announced that they will sell insurance by becoming a corporate insurance agent.
And a day earlier to that, India Post too announced their intentions of becoming corporate insurance agent. Paytm too is looking at this direction.
Are ecommerce and fintech embracing each other, and a new digital market of financial products will emerge?
Do share your views, by commenting right here!
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