SpiceJet, the country’s #2 low-cost carrier, today announced the launch of a unique Equated Monthly Installment (EMI) scheme for air tickets. Payment for the ticket can be made even over a 12 month period.
Also called ‘Book Now, Pay Later’ scheme, it extends credit to passengers at up to 70% lower interest rates than those charged by credit card companies for EMI purchases, SpiceJet said.
“This is valid on India-issued credit cards of Axis Bank, HSBC Bank, Kotak Bank, and Standard Chartered Bank (other banks will be added shortly),” it said.
Passengers holding credit cards issued by these banks can pay as per their own preference of schedule that may vary between 3 and 12 months, at interest rates in the range of 12-14%, compared to typical credit card interest rates in excess of 36%.
“For example, for a ticket costing Rs 5,000, this scheme can result in savings of over Rs 1,000 in terms of interest charges relative to credit cards for a 12-month deferred payment plan”, it said.
SpiceJet’s Chief Marketing Officer, Mr. Debojo Maharshi said, “We are confident that this scheme will make air travel more economically-viable than ever before for those customers who want to travel now, but pay later”.
The facility is available for bookings made through the SpiceJet website. In case of airfare refunds, customers will have to bear the costs of the interest rate already billed for that particular booking, it said.
SpiceJet has proven to be the most innovative airline in India and has offered several schemes, including discounts sales where tickets were available for as little as Rs 400 all in.