Flipkart Pay later - benefits, uses and activation

 

Flipkart Pay later : benefits, uses and activation process

Managing finances is a day to day activity now a day. As the inflation is rising worldwide, people are looking for alternative ways to plan their monthly bill payments. There is limit in everyone’s purchasing power but certain unalarmed needs knock everyone’s door now and then.

Diwali is at its arrival and we are all geared with our shopping list. Diwali is the biggest festival in India. Festival season is something which add lots of gifts to our shopping basket always and deep down in our minds everyone wants festivals to be full of gifts, sweets, new cloths and latest products. But the question is, “How to get the extra money to pay” or "Loan & credit to pay".

Look honestly not all of us have any access to any credit facility like short term loans, credit cards etc. And no want to bear the exhausting, complicated, time taking process of loan approval. Loan approval in itself requires a lot of paper work which is not a cup of tea for a common person like a student or a homemaker. In addition to this, short term loans and credit facilities (like Credit Cards) require paying charges and interests on regular basis.

So here I’am with an easy solution for all these issues. We are all now very much familiar with online shopping and e-commerce platforms. So why not to use these platform facilities to plan our finances. Flipkart  is out with a very useful feature of “Flipkart Pay Later”. Its quite old now but still, people are not much aware of it and its benefits.

Flipkart Pay later

Flipkart Pay Later is a kind of credit facility or loan facility offered by flipkart in association with IDFC First Bank, in which you can pay after the purchase of your product. The payment system is basically of two different types i.e. single payment in the subsequent month (Pay Next Month) or EMI payment. Flipkart Pay Later (EMI) is currently available for select products where transaction amount is greater than ₹ 2,500.

This facility can also be used with their partner platforms such as Myntra and 2GUD. Flipkart Pay Later (EMI) is not available on their partner platforms. But my main emphases is over  Pay Next Month because it does not charge any interest.

No interest, hidden Charges and processing fee

The best think about Flipkart Pay Later in that it won’t charge you any processing fee and interest for the facility. Flipkart Pay Later (EMI) does incorporate interest element in its EMI (every month installment) but in Pay Next Month there is no interest charged. There is a nominal usage fee of ₹10/- will be added to the customer’s dues if the credit usage for the month is higher than ₹1,000/-.

Benefits

1. Instant credit upto ₹ 70,000.
2. Few minutes application processing time.
3. No documentation i.e. e-KYC ( Electronic Know Your Customer)
4. Credit for a month without any charge (except ₹ 10) like annual maintenances, service charge, interest charge etc.
5. Affordable EMI without any loan approval or credit approval process.
6. Easy adjustment of refunds on cancellations from dues payable.
7. One bill payment of all purchases made last month or previous months. So individual record keeping.
8. Any time cancellation or surrender of the facility after payment of all dues.
9. 24*7 customer support.

Penalty

We talked about all the pros, now is the point to discuss the cons. As it is a financial credit or loan so conclusively in case of default, there will some penalty too. Penalty will be charges if you defaulted to pay or failed to pay the due amount or minimum amount due (partial payment). Penalty will be calculated on the outstanding dues (includes outstanding principal amount, interest or late payment panality) as on 5th of each month.

Bill Amount (in ₹)                     Late Payment Charge Amount (in ₹) 

100-500                                                60    

501-1000                                            125    

1001-2000                                          175

2001-4000                                          300

4001-5000                                          410

5000 & Above                                     600

Minimum amount due is the sum total of "10% of your Pay Later purchases" plus "Convenience fee for the partial payment option" plus "Any rolled over (or unpaid) amount from the previous month(s)" plus "Any late payment charges from the previous month(s)".

Convenience fee is calculated on the amount you carry forward to the next month.

Carry Forward amount to next month	Convenience Fee for Partial Payment	Late Payment Charges for payments after the due date
<= ₹ 500	₹ 60	₹ 60
₹ 501 - ₹ 1000	₹ 60	₹ 125
₹ 1001 - ₹ 2000	₹ 120	₹ 175
₹ 2001 - ₹ 4000	₹ 240	₹ 300
₹ 4001 - ₹ 5000	₹ 330	₹ 410
₹ 5000 & above	₹ 475	₹ 600

Note : all charges are inclusive of all taxes

How to Avail and due payments

One can activate Flipkart Pay Later by Aadhaar OTP-based e-KYC (Electronic Know your client) which is valid only for 12 months from the date of activating your Pay Later account.

For this you have of to visit the Flipkart Pay Later section under 'My Account' and refer to the ‘Pay Later’ section in the Flipkart mobile Application or website.

The due payments are to be done by the 5th of the subsequent month(s).

How to activate

It is a three stage process. First stage is the Pan Activation. Second stage is the Aadhaar OTP-based e-KYC. Last stage is the Bank confirmation.

Step 1 : In the Flipkart App or website. Login and go to Pay Later section under 'My Account'  or simply you can search Flipkart Pay Later over the search bar provided in the Flipkart App or website.

Step 2 : Enter your PAN (Permanent Account No). Click on “Activate Now” button.

Step 3 : Verify Aadhaar : Fill in your Aadhaar no and verify by the OTP received in the registered mobile with Aadhaar. Click on “Verify” button.

Step 4 : Fill in the OTP (one time password) in the pop up dialogue box.

Step 5 : Review and submit your application. Check your details, name, address etc.

Step 6 : Verify your Bank account by filing your UPI Id or Bank Details. Click on “Confirm and Submit” button.

Step 7 : Rupee one will be credited in your bank account linked with Aadhaar.

Step 8 : Your eligibility will be checked.

Step 9 : Now your will be informed about your credit limit for Flipkart Pay later (Pay Next Month).

There is also a offer on the first purchase by using Flipkart Pay Later, you can get 15% off subject to the maximum of ₹150/-.

If you want to see the complete process, then you can visit the my youtube link : https://youtu.be/FxYMP4onRek

For Flipkart Pay Later (EMI) your have to check on individual product eligible for it and then proceed. For more details you can visit Flipkart official website and mobile application. I hope this blog helps you out to finance your Diwali shopping plans. I tried best to provide you the best information.

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Disclaimer :

The above blog is purely for educational and  guidance purpose. It's just the reflection of the author's personal experience and judgment. The author has just provided the general information & understanding and its not at all an alternative of any legal advice or practitioner. The content stated in the blog should be used by the reader at his own discretion and sole responsibility. The content of the blog can be only used for any other document, write-up, article, blog and any written or printed material whether on paper or digitally in any form, with the prior permission of the author.