What is the Flipkart Pay Later – EMI, Charges, Benefits

Flipkart Pay Later is a great way to pay for your online purchases without having to worry about carrying cash or using a credit card. 1 With this payment option, you can enjoy the convenience of shopping online without having to worry about upfront payments.

It is one of the popular payment methods offered by Flipkart, an Indian e-commerce platform. 2 3 It went viral and crossed 6 million users in 7 months. 4 it is the second biggest pay later in India. 5 It is a convenient and hassle-free way for customers to make payments for their purchases. It allows customers to pay for their purchases at a later date, without having to pay any interest or additional fees.

Flipkart Pay Later

Flipkart Pay Later is a digital credit line that enables customers to purchase items on Flipkart without having to pay upfront. Customers can choose to pay for their purchases at a later date, up to a maximum of 30 days. Also, you can convert it into EMI. The credit line is provided by Flipkart’s partner, IDFC First Bank, which is one of the popular banks in India. 6

Moreover, you can pay your bill payments such as Electricity, water, gas, and more by using a pay later service.

To use Flipkart Pay Later, customers need to have a valid Indian mobile number and an active Flipkart account. Customers can also link their Aadhaar card and PAN Card to their pay later account to avail of this payment option.

Once the customer has linked their account, they can select the Pay Later option at checkout. The customer will then receive an OTP (one-time-password) through SMS, which they need to enter to complete the transaction.

What is Flipkart Pay Later EMI?

Flipkart Pay Later EMI is a short-term loan facility that allows customers to purchase products on credit and pay for them in easy instalments. 7 It is a great way to shop for products that are expensive and may not be affordable in one go.

With Pay Later EMI, customers can purchase products without having to pay upfront and with minimum interest rates of 24%. Moreover, Flipkart also offers NO-Cost EMI on Selected Products. 8

How to Activate And Apply

Activating Flipkart Pay Later is easy and can be done in a few simple steps. Here is a step-by-step guide on how to activate Pay Later:

  • Step 1: Log in to your Flipkart account and go to the ‘My Account’ section.
  • Step 2: Select the ‘Pay Later’ option from the menu.
  • Step 3: Enter your mobile number and click on ‘Send OTP’.
  • Step 4: Enter the OTP that is sent to your mobile number and click on ‘Verify’.
  • Step 5: Enter your personal details such as name, address, date of birth, etc.
  • Step 6: Provide your PAN card And Aadhar Card and click on ‘Submit’.
  • Step 7: Once your details are verified, you will be able to use Flipkart Pay Later.

Once you have activated Pay Later, you can use it to shop on Flipkart without having to worry about paying for the purchase immediately.

The Benefits And Advantages

BenefitsDescription
Improve Your Credit Scoreit is another great way to improve your credit history and score.
No worry about immediate paymentThe customer can purchase products without having to worry about immediate payment
Safe And SecureThe user can purchase products without having to worry about their credit or debit card details being shared with the merchant
Flexibility And Easy EMIYou can also choose to pay for their purchases in installments, which makes it easier for them to manage their finances.
Simple EMI Optionsit allows customers to purchase items without having to pay the entire amount upfront. pay for their purchases in EMIs spread over a period of 3, 6, 9, or 12 months. which makes it easier for them to manage their finances.

What Are The Charges

Recently, Flipkart Add Usage Charges for customers to use pay-later services. here is the charges list –

Pay Later LimitUsage ChargesGST
Purchasing from Rs. 0 to Rs. 1000Rs. 5Additional GST Taxes
Rs. 1001 to Rs. 3000Rs. 10Additional GST Taxes
Greater than Rs. 3000Rs. 15Additional GST Taxes
Convenience FeeNo convenience fee charged

Pay Later does not charge any joining and additional annual fees or interest for using this payment option. [9 However, customers will be charged a late payment fee if they fail to make the payments on time. The late payment fee is 3% of the total amount due, whichever is higher. here is the list of other charges –

Interest Rates And Hidden Charges: (Updated 2024)

  1. Interest Rates: Flipkart Pay Later EMI transactions incur interest charges ranging from 16% to 24%, akin to many credit cards. Users must factor in these rates when planning purchases to manage finances effectively. 10
  2. Usage Fees: Usage fees are monthly charges based on the Flipkart Pay Later limit and monthly usage. For accounts up to Rs. 1000, charges are Rs. 5 + 18% GST; for limits between Rs. 1000 and Rs. 3000, it’s Rs. 10 + 18% GST, and for limits above Rs. 3000, it’s Rs. 15 + 18% GST. These fees became applicable from March 1st, 2023. 11
  3. Late Payment Charges: A penalty of 3% of the outstanding due is levied monthly, calculated from the 5th of the month. Timely payments are crucial to avoid additional fees and maintain a positive credit standing.
  4. Foreclosure Charges: Foreclosing within the cool-off period incurs no charges. Outside this period, a charge of 4% of the unbilled principal outstanding amount is applicable, exclusive of GST. Notably, there are no charges for Buy Now Pay Later foreclosure.
  5. Processing Fees: A one-time processing fee is levied on each Flipkart EMI transaction, varying based on the EMI plan and order value. For 3, 6, 9, and 12 months of EMI, the processing fee is 1.5% or Rs. 100 (whichever is higher).

How to Calculate Your Charges and Interest Rate:

My Own Experience of Using Flipkart Pay Later (With 24% Interest Rate):

In a practical scenario, let’s revisit the Rs. 10,000 phone purchase with a 3-month EMI of Rs. 9,000. The processing fee remains Rs. 150, and we’ll use a 24% interest rate this time.

Charge TypeCalculation
Processing Fee1.5% of order value or Rs. 100 (whichever is higher) = Rs. 150
Interest Charges (Example)For the first month: Rs. 9,000 * 24% / 12 = Rs. 180
For the second month: Rs. (9,000 – Rs. 3,000) * 24% / 12 = Rs. 120
For the third month: Rs. (9,000 – Rs. 6,000) * 24% / 12 = Rs. 60
Total Interest ChargesRs. 180 + Rs. 120 + Rs. 60 = Rs. 360
Total ChargesProcessing Fee + Total Interest Charges = Rs. 150 + Rs. 360 = Rs. 510

With a 24% interest rate, the total charges for the Rs. 10,000 phone purchase over a 3-month EMI on Flipkart Pay Later would amount to Rs. 510, consisting of a processing fee of Rs. 150 and total interest charges of Rs. 360. It’s crucial for users to be aware of these charges to make informed decisions regarding their purchases and repayments.

What are the Late Payment Charges for 2024

in 2024, enforces late payment charges to stress the importance of timely repayments. Late payments incur a 3% penalty on the outstanding due, calculated monthly from the 5th. Understanding these charges is pivotal for users to maintain financial prudence.

Late Payment Charges (2024):

AspectDetails
Penalty Rate3% of outstanding due
Calculation FrequencyMonthly, commencing from the 5th
PurposeEncourage prompt payment

Key Points:

  1. Penalty Rate: Late payments trigger a 6% penalty on the outstanding amount, serving as a clear indicator of the financial impact of delays.
  2. Calculation Frequency: Charges are calculated monthly, starting on the 5th, prompting users to prioritize timely payments to avoid additional fees.
  3. Purpose: The imposition of late payment charges aligns with the aim of fostering responsible financial habits and ensuring users understand the repercussions of delayed repayments.

How to Increase Flipkart Pay Later Limit

  1. Pay more than the minimum amount due – Paying more than the minimum amount due on your Pay Later bills can help you maintain a good credit score and keep your limit high.
  2. Make timely payments – One of the most important things to remember when using Pay Later is to make your payments on time. Late
  3. Maintain Your good credit score – A good credit score indicates to lenders that you are a responsible borrower and are likely to pay back your debt. It also helps you get access to better terms and lower interest rates.

Eligibility

To Be Eligible for Pay Later, customers must be 18 years of age or older to use Pay Later Service. Customers must also have a valid Indian mobile number and a valid Indian address. Moreover, also have a valid Indian bank account in order to use Pay Later.

Also, The customers must have a good credit score in order to be eligible for Flipkart Pay Later. Customers must also agree to the terms and conditions of Flipkart they can use the service.

Eligibility CriteriaRequirements
Age18 – 65 years
Credit ScoreMinimum CIBIL score of 600 or Experian score of 650
KYC DocumentsPAN card, Aadhaar card, and a valid mobile number linked with the Aadhaar card.
Transaction HistoryA good track record of making timely payments and maintaining healthy transaction behavior on the Flipkart platform.
Employment StatusSalaried or self-employed
IncomeThe minimum monthly income requirement varies by city and may range from Rs. 15,000 to Rs. 30,000.

How to Deactivate

  1. The first step in closing a Flipkart Pay Later account is to ensure that all outstanding payments have been taken care of. Customers should make sure that all payments due have been made in full before initiating the closure process.
  2. Once all payments are taken care of, customers can proceed to close their accounts.
  3. The next step is to contact Flipkart’s customer service team. Customers can call Flipkart’s customer service number or send an email to the customer service team.
  4. Customers should provide their account details and explain the reason for closing the account. Flipkart’s customer service team will then process the request and close the account.
  5. Once the account is closed, customers will no longer be able to use Pay Later to make purchases.

They will also not be able to access the Flipkart Pay Later account dashboard. Customers should also note that closing a Pay Later account will not affect their credit score.

Frequently Asked Questions

  1. 1. What is the Flipkart Pay Later Customer Care Number?

    The Customer Care toll-free number is 1800 202 9898. It is available for customers to contact Flipkart for any queries or issues related to their Pay Later account. The customer care number is available 24 hours a day, 7 days a week.

  2. 2. What is a Smart upgrade in Flipkart pay later.

    Recently, Flipkart offered Smart Upgrade Program, which allows customers to purchase a product by paying a small upfront amount and the rest in easy monthly instalments.

  3. 3. How to Unblock Flipkart Pay Later?

    To Unblock or Block your Flipkart Pay Later Account, you can call to customer care services to request to unblock your credit limit and start using.

  4. 4. Does Flipkart pay later increase cibil score?

    Using Flipkart Pay Later won’t directly affect your CIBIL score. It’s like a short-term credit line where you need to make monthly payments, not a loan. Making payments on time can help build your credit history and might improve your score.
    However, if you’re late or miss payments, it could harm your credit score. Keep in mind that building good credit requires responsible borrowing and takes time, no matter which platform you use.

Conclusion

Flipkart Pay Later is a convenient payment option that allows customers to buy now and pay later. It is an easy and secure way to shop, with low interest or hidden fees. With this payment option, customers can enjoy the convenience of shopping without worrying about the financial burden. With its easy-to-use features and secure payment system, Flipkart Pay Later is an ideal choice for customers looking for a hassle-free shopping experience.

Article References:

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  1. YouTube: Introduction of Flipkart Pay Later (https://www.youtube.com/watch?v=fEPfRhKo0f0) ↩︎
  2. Hyyzo: Eligibility (https://hyyzo.com/blog/flipkart-pay-later-complete-guide/) ↩︎
  3. Flipkart: Due Date Terms And Conditions (https://www.flipkart.com/flipkart-pay-later-store) ↩︎
  4. LinkedIn blogs: Why Flipkart Introduced Buy Now Pay Later? (https://www.linkedin.com/pulse/why-flipkart-introduced-buy-now-pay-later-shubham-srivastava) ↩︎
  5. VCCircle: Flipkart launches ‘buy now, pay later’ feature (https://www.vccircle.com/flipkart-launches-buy-now-pay-later-feature) ↩︎
  6. economictimes.indiatimes.com: Flipkart Pay Later credit facility crosses 6 million users in 7 months (https://economictimes.indiatimes.com/tech/startups/flipkart-pay-later-credit-facility-crosses-6-million-users-in-7-months/articleshow/91662820.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst) ↩︎
  7. Businessinsider: Flipkart claims to be the second biggest ‘buy now, pay later’ player ahead of Paytm, Amazon (https://www..in/business/ecommerce/news/flipkart-adds-6-million-customers-to-its-buy-now-pay-later-kitty-to-take-on-paytm-amazon/articleshow/91665474.cms) ↩︎
  8. IDFC Bank: List of active digital lending partners (https://www.idfcfirstbank.com/content/dam/IDFCFirstBank/PDF/active-digital-lending-partners.pdf) ↩︎
  9. Zeebiz: Know how to avail ‘Flipkart Pay Later’ EMI facility (https://www.zeebiz.com/companies/news-flipkart-extends-additional-benefit-on-emi-offerings-opens-credit-line-of-up-to-rs-70000-know-how-to-avail-flipkart-pay-later-emi-facility-165455) ↩︎
  10. Gadgets360 Website: Flipkart Introduces ‘No Cost EMI’ Option (https://www.gadgets360.com/internet/news/flipkart-introduces-no-cost-emi-option-843700) ↩︎
  11. Flipkart: FAQs (https://www.flipkart.com/pages/bnpl-faq) ↩︎
  12. Flipkart: Advanz Services (https://www.flipkart.com/pages/advanz-service-tnc) ↩︎
  13. Onlytech: Flipkart is charging usage fee for Pay Later without informing customers (https://onlytech.com/community/threads/flipkart-is-charging-usage-fee-for-pay-later-without-informing-customers.52548/) ↩︎
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