Passengers Of This Airline Can Pay For Tickets With Zero-Interest EMI! How Will It Work?
SpiceJet has introduced a scheme in which passengers can pay for their tickets in instalments.
Shilpa Bhatia, chief commercial officer, SpiceJet, said that customers need not change their travel plans because of high ticket prices.
Payment can be made in 3, 6 or 12 instalments.
As a launch offer, the airline is offering customers a three months EMI option at no additional cost (no interest).
But if one opts for 6/9/12 months, then the interest payable will be at 24% annually on a reducing balance basis.
The minimum ticket amount to avail EMI option is Rs 900 and maximum is Rs 40,000 and is subject to future changes.
To take part in the scheme, the customer has to provide their details such as PAN number, Aadhar number or VID and verify it with a one-time password.
Customers have to pay the first EMI using their UPI ID.
The subsequent EMIs would be deducted from the same UPI ID.
Credit card or debit card details are not required for this scheme.
The scheme is valid for India-issued credit cards of Axis Bank, HSBC Bank, Kotak Bank, Standard Chartered Bank and SBI Bank.
Other banks will be added in the future.
Holders of these credit cards can pay as per their own preference of schedule varying between 3 and 12 months, at interest rates in the range of 12-14%.
This is a steal in comparison to typical credit card interest rates in excess of 36%.
Other Conditions To Note
Bhatia also said that if a customer “wishes to end the loan before the chosen EMI period, they can do the same and no foreclosure charges will be levied.”
In case of refunds, the costs of the interest rate already billed for that particular booking has to be borne by the customer.
In case of flight cancellation, the passenger will be refunded only the amount paid for the booking.
The refund will NOT include the amount paid as interest to avail the EMI payment option.
To implement the scheme, it has tied up with fintech company Capital Float.
The “Book now Pay later” scheme may be the first of its kind for any airline, although the concept isn’t unique.
Through the scheme, SpiceJet wants to broaden its customer base by making it convenient for customers without cards to make payments in instalments.
Similar Scheme From IndiGo
IndiGo launched a flexible payment scheme last year through which customers can secure a ticket by paying a minimum 10% of fare.
The balance amount must be paid at least 15 days before the departure.