Zero-cost EMIs are back this festive season! Here are the details

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 to Reserve 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.

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