Flipkart Pay Later enters the scene, offering a convenient, yet potentially double-edged sword for online shoppers. This service grants you up to Rs 1 Lakh in credit to shop now and pay later, but is it truly beneficial?

In this comprehensive guide, we’ll dissect Flipkart Pay Later, analyzing its positive aspects like flexibility and convenience. We’ll also delve into potential drawbacks like interest charges, which can vary, and the risk of overspending. Additionally, we’ll compare Flipkart Pay Later to other payment options and incorporate real customer experiences to provide a balanced perspective.

What is Flipkart Pay Later Concept?

Flipkart Pay Later emerges as a credit-based payment option within the Indian e-commerce giant Flipkart.

It empowers customers to make immediate purchases and settle the dues later, typically within a 14-30 day window.

This caters to individuals who might not have the funds readily available but still wish to proceed with their purchase.

Notably, Flipkart Pay Later offers the flexibility to either pay the entire amount at once or break it down into installments, providing a convenient solution for managing online shopping expenses.

How Flipkart Pay Later works

The Pay Later option on Flipkart is a simple and easy-to-use feature. To start using it, customers will need to sign up for the service by providing some basic personal and financial information.

Once the sign-up process is complete, customers can start shopping on Flipkart as usual.

When checking out, customers will have the option to select “Pay Later” as their payment method.

After the purchase is complete, Flipkart will send an invoice to the customer with the amount due and the due date.

When using Flipkart Pay later, customers have the flexibility to choose between paying the full amount or opting for EMI (Equated Monthly Installments).

This choice is typically made at the time of selecting the payment option in the shopping cart.

Once the payment option is selected and the transaction is completed, it is not possible to change the payment option.

Therefore, customers should carefully consider their preferred payment method before finalizing the purchase on Flipkart.

Additionally, customers can also view their transaction history and keep track of their payments through their Flipkart account.

How to apply Flipkart Pay Later?

To apply for Flipkart Pay Later, customers will need to follow these steps:

1. Login to your Flipkart account.
2. Browse the products and add the items you wish to purchase to your cart.
3. During the checkout process, select the Pay Later option.
4. Provide the required personal and contact information, including your name, PAN Details, email address, and mobile number. Also complete Aadhar base e-kyc process.
5. Flipkart will then perform a credit assessment to determine your eligibility for the Pay Later option.
6. If you are eligible you get transaction limit, you will be able to complete your purchase using the Pay Later option.
7. Once the purchase is complete, you will receive an email with the payment details and due date.(Normally due date is 5th)
8. You can make the payment by the due date either all at once or in instalments, or you can also convert your purchase into EMI

Who is eligible for Flipkart Pay Later?

Flipkart Pay Later is a credit-based payment option and customers need to meet certain creditworthiness criteria to be eligible to use it.

Eligibility for Flipkart Pay Later is determined by Flipkart’s internal credit assessment system. Based on the credit assessment, customers will be either approved for the Pay Later option or not.

Factors like credit score, purchase history, and payment history on the platform are considered when determining the eligibility.

Is Flipkart Pay Later Interest Free?

If you settle your bill next month, Flipkart Pay Later offers an interest-free choice. However, if you opt for the Pay Later EMI option, a 24% interest rate will be applied.

Flipkart offers promotional activities where selected products are available with a “No Cost EMI” option. This means that during the promotion, customers can avail of the Flipkart Pay Later EMI facility without any additional interest charges.

However, customers should be aware that if they are unable to pay the full amount by the due date, they may be charged late fees.

It’s important for customers to read the terms and conditions and understand the fees and charges before using the Pay Later option.

What is Flipkart Pay Later EMI Option?

Flipkart Pay Later EMI option, allow you to shop now and repay for your purchases through easy monthly installment.

EMI option is not interest free, but take heavy interest 24% + 1.5% processing fee means you pay 25.5% for your EMI. Also

EMI Interest Rate Chart

For EMI option – Processing Fee – 1.5% or Rs. 100 whichever is higher

Advantage of Filpkart Pay Later

The Pay Later option offers several advantages to customers.

1. Convenience: Pay Later allows customers to make purchases without having to pay immediately, providing them with the flexibility to pay at a later date. This can be especially useful for customers who may not have the funds available at the time of purchase but still want to make the purchase.
2. No Interest: As long as the customer pays the full amount by the due date, there are no additional charges or interest fees.
3. Easy to Use: The Pay Later option is integrated into the regular Flipkart checkout process, making it easy for customers to use.
4. Credit Building: By paying their bills on time and maintaining a good credit history, customers can use Pay Later to improve their credit score and make them eligible for other credit options in the future.
5. No Extra Documents: Pay Later doesn’t require any additional documentation, unlike traditional credit options such as personal loans.
6. Easy Track of Transactions: Customers can keep track of their transactions and payments made through Pay Later option through their Flipkart account.
7. EMI Option: Customers can opt for an EMI plan if they prefer to pay in instalments.

All these advantages make Pay Later a smart payment option for customers who want to shop now and pay later at their convenience.

Potential Drawback

While the Pay Later option offers many benefits, there are also some potential drawbacks to consider.

1. Limited Availability: Not all customers are eligible for Pay Later and it’s based on the creditworthiness of the customer as determined by Flipkart.
2. Late Fees: If a customer is unable to pay the full amount by the due date, they may be charged late fees.
3. Credit Score Impact: If a customer misses a payment or makes a late payment, it could negatively impact their credit score.
4. Limited to Flipkart: Pay Later is only available on Flipkart, so customers cannot use it on other e-commerce platforms or in physical stores.
5. Limited Spending: Some customers have reported that the spending limit for Pay Later is low, which could be a drawback for customers who want to make larger purchases.
6. Payment Date: Pay Later option pay your due before 5th every month. If your monthly salary received after 5th then this option not suitable for you.

It’s important for customers to weigh these potential drawbacks against the advantages before deciding to use the Pay Later option.

In general, customers should only use the Pay Later option if they are confident they will be able to pay the full amount by the due date and avoid late fees or interest charges.

Flipkart Pay Later Customer Care

Customers who need assistance with Flipkart Pay Later can contact Flipkart’s customer care team for support. Here are a few ways to get in touch with them:

1. Phone: Customers can call the Flipkart customer care number at 1800 208 9898.
2. Email: Customers can email Flipkart customer care at care@flipkart.com
3. lender Partner: IDFC First Bank 1860 500 9900.
4. Email: banker@idfcfirstbank.com

Customers can contact customer care for any issues related to their Pay Later account, such as inquiring about their account status, reporting a problem with a transaction, or requesting assistance with making a payment.

Customer Review

To get a better understanding of the Pay Later option, it’s helpful to look at customer reviews. Overall, the majority of customers who have used the Pay Later option have had positive experiences.

Many customers have praised the convenience and flexibility of the Pay Later option, stating that it has allowed them to make purchases they otherwise would not have been able to afford.

They also appreciate the ease of use and the fact that it doesn’t require any additional documentation.

However, there are also some customers who have had negative experiences with the Pay Later option.

Some have reported that the spending limit is low, while others have had issues with late fees or difficulty making payments.

Personally I am not happy with EMI option they charge 24% interest + 1.5% processing fee, same time I use credit card interest rate between 12-16% and processing fee only 200. Also If Product offer No-cost EMI then only pay processing fee 200.

It’s important to note that individual experiences can vary and it’s always a good idea to read reviews and compare them with other options available before making a decision.

How No Cost EMI work in Flipkart Pay Later?

In Flipkart Pay Later, the No Cost EMI feature is designed to provide customers with the option to make purchases and pay for them in equal installments over a specified period, without incurring any additional interest charges. This is made possible through a combination of upfront discounts and adjustments to the loan amount.

Let’s break down how No Cost EMI works using the provided points and example:

1. Definition of No Cost EMI:
   Flipkart defines No Cost EMI as an offer where the total amount paid to the EMI provider will be evenly split across the EMI tenure. The interest that would typically be payable to the bank is instead offered as an upfront discount during checkout. This arrangement effectively grants customers the advantage of a No Cost EMI.
2. Example: Buying a Samsung F54:
   Let’s consider the purchase of a Samsung F54, which has a cost of Rs.30,000.
3. Upfront No Cost EMI Discount:
   In this scenario, there’s an upfront No Cost EMI discount of Rs.638. This discount is equivalent to the interest that would be charged on a 3-month EMI.
4. Adjusted Product Price:
   After applying the upfront discount, the price of the product is reduced to Rs.29,362.
5. Interest Calculation on Adjusted Loan Amount:
   The interest is calculated based on the adjusted product price of Rs.29,362 (not the original price of Rs.30,000). The interest is treated as part of the loan amount, making the effective credit amount Rs.29,362 + Interest of Rs.638 for 3 months, which totals Rs.30,000.
6. Conversion to EMI:
   The resulting Rs.30,000 is then divided into equal installments for the chosen EMI tenure, which in this case is 3 months. Each EMI installment would be Rs.10,000.
7. No Additional Charges:
   The key benefit of No Cost EMI is that you pay the purchase amount in installments without any additional charges, such as interest, down payment, or processing fees. In this example, you are able to make three installments of Rs.10,000 each for the Rs.30,000 product, all without incurring any extra costs.

In summary, Flipkart’s No Cost EMI feature allows you to purchase products and pay for them over time without incurring interest charges. The interest that would have been paid is offered as an upfront discount, making it possible to evenly distribute the purchase price over the chosen EMI tenure without any extra fees.

Flipkart Pay Later is good Option?

If a customer makes a purchase on the 15th of a month, for example, they would only have 20 days until the payment due date on the 5th of the following month.

Additionally, there is a processing fee of Rs. 15 for each transaction made using Flipkart Pay Later.

If a customer fails to make the payment on time, they may face heavy penalties, which could result in an effective annual interest rate of around 40%.

Late payments can also negatively impact credit score with CIBIL, the credit bureau in India.

Flipkart Pay Later may not be a good option for you or anyone due to the potential for high interest rates and penalties.

It’s important to carefully consider the terms and conditions and determine whether this payment option is suitable for your financial situation.

It may be advisable to explore other payment options or methods that may be more beneficial for you.

What CIBIL score is required for Flipkart Pay Later?

If you do not have a CIBIL score, you can still avail of Flipkart Pay later. However, without a CIBIL score, your credit limit may be relatively low, typically ranging from 700 to 2000 rupees. The specific limit will depend on your shopping history on Flipkart.

Flipkart pay later partner considers your purchase history on their platform to assess your creditworthiness and determine the limit for your Pay later facility.

If you have made previous purchases on Flipkart and have a positive payment record, it can help them recognize your creditworthiness and provide you with a higher limit.

If you have a CIBIL score but are listed in the default category, it is likely that you will not be able to get a credit limit with a low CIBIL score. Being listed in the default category indicates that you have a history of defaulting on payments or not fulfilling your financial obligations.

Bottom Line

In conclusion, Flipkart’s Pay Later option is a convenient and easy-to-use payment method that allows customers to make purchases and pay at a later date.

This can be especially useful for customers who may not have the funds available at the time of purchase but still want to make the purchase.

However, the Pay Later option is not available to all customers and it’s based on the creditworthiness of the customer as determined by Flipkart.

If you buy on the 15th, your bill is generated on the 1st, and your payment due is on the 5th. You have only 20 days to use it. If your pay date is after the 5th, this option is ineffective for you.

They may be charged late fees if I am unable to pay the whole amount by the due date. A 5% late fee translates to a 60% annual interest rate.

If I choose the EMI option, it is also not a viable option because Flipkart charges a 24% interest rate plus processing fees. If I take a personal loan, the interest rate is 12-15%, and you pick a 12-24 month payment plan. Credit card interest rates are relatively modest, ranging from 12-16% depending on the credit card. I personally not use Pay Later EMI option.

If you have no credit, you can use the pay later option with a small transaction and pay your invoice early. Your credit score will be created after 2-3 CIBIL updates.

Flipkart Pay Later FAQs