Amazon has not revealed what the interest rates will be, but they aren’t likely to be higher than the industry standards
Amazon India on Monday announced the rollout of Amazon Pay EMI for the customers who do not own a credit card yet want to make high-value purchases in instalments. The Amazon Pay EMI will offer the buyers a credit of up to Rs 60,000 that can be used to buy costly items on the company’s website and app. Currently available as an invite-only programme, the Amazon users will need to complete a registration process to be allocated a credit limit that they can use later.
Amazon Pay EMI comes as a solution for those customers who sometimes miss out on buying high-value products because they don’t own credit cards that allow them paying in instalments. “Customers without access to credit, often find it difficult to afford high-value purchases and go through the hassle of saving up or delaying their purchase. With this initiative, Amazon Pay will reach out to customers who do not have access to credit cards and consumer lending solutions, helping them afford purchases on instalments,” said Amazon India in a press release.
It is expected to roll out in coming days along with an offer for the first-time users. Amazon will offer No Cost EMIs on the amount loaned for three months and six months tenures. The invite will be sent to the customers by Amazon over the next few days.
To offer the credit to the customers, Amazon has tied up with Capital Float as its lending partner that will initiate and process the Amazon Pay EMI credits. Amazon will offer up to Rs 60,000 credit to the customers, subject to the two-step registration process that will determine the limit to be assigned individually. The users interested to enrol themselves for the Amazon Pay EMI will need to provide KYC documents and PAN card number. However, as we mentioned, it will be visible to only those who have been invited.
There will be an interest charged on the credit amount sanctioned to the user, however, the processing fees will be waived off. Amazon has not revealed what the interest rates will be, but they aren’t likely to be higher than the industry standards. After the credit loan is issued, the payer can set up auto repayments so that they don’t have to remember paying the EMI every month. “Customers can track their EMI order history, repayment history and pending dues through Amazon Pay homepage,” said the release.
“Amazon has always been focused on making shopping truly affordable for masses online. We are on a mission to enable credit access for every Amazon customer. Amazon Pay EMI is a hassle-free way of availing instant credit for customers that currently don’t have access to credit. This product has been developed leveraging India Stack to make the process completely digital. After recent expansion of EMI on Debit cards, we are very excited to bring this facility ahead of festive season and being the most affordable destination for our customers.” said Vikas Bansal, Director, Emerging Payments, Amazon India.