India’s
eCommerce space is abuzz with new launches and key announcements in the last two days. On Tuesday, we heard how
Amazon plans to deliver right at your door steps in India. Yesterday, we heard about
Snapdeal’s partnership with Tribal Cooperative Marketing Development Federation of India Ltd. (TRIFED) to empower tribal artisans. And today, we have got the news that online shopaholics will soon get the freedom to buy as much as they can afford on credit as non-bank finance companies are working on interest-free installment plans for them.
The information was revealed in an ET report, which stated that
EMI option is likely to be offered in the next six months. This option is now available only for buying from large brick-and mortar stores.
The financial daily further revealed that
Bajaj Finance is leading the initiative and is a developing a payment gateway to suit the transactions. Other NBFCs are also evaluating similar opportunities.
"We are in talks with all the leading ecommerce sites to start 0% EMI schemes and currently finalising the mechanism since it would involve a change in technology in the back-end and the way the transaction will be completed," Devang Mody, Bajaj Finance's president for consumer business told ET.
To start these 0% EMI schemes, lenders would need to make certain changes to their payment systems as the existing payment gateways for
online shopping are suited for transactions through credit cards, debit cards or net banking.
Manish Sharma, managing director at
Panasonic India and president of the Consumer Electronics and Appliances Manufacturers Association, told the financial daily that NBFCs' interest-free credit facility to ecommerce consumers would further stimulate growth in online shopping.
He further added, "The EMI model works extremely well with the Indian consumer and eliminating the interest rate on online transactions will further increase the base of internet savvy consumers."
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