Book now, pay later: SpiceJet has a new EMI scheme with 12-14% interest for airfares

Low-cost carrier SpiceJet today announced a scheme called ‘Book Now, Pay Later’, a convenient Equated Monthly Installment (EMI) option to book airfares.

The scheme is valid for passengers booking tickets through India-issued credit cards of Axis Bank, HSBC Bank, Kotak Bank, and Standard Chartered Bank (other banks will be added shortly).

Passengers with credit cards issued by the above mentioned 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. This offer allows passengers to save significantly (up to 70% interest cost reduction) on deferred/delayed payment interest costs relative to traditional credit card fees,” SpiceJet said in a statement.

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.

“ 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”, SpiceJet’s Chief Marketing Officer, Mr. Debojo Maharshi said.

Last week, SpiceJet  put on sale 1 lakh seats on its select domestic flights for just Re 1 excluding taxes and fees under a limited offer period that allows the customers to undertake travel from 15 July to 31 March next year.