Table of Contents
Introduction:
Flipkart Pay Later is a convenient payment option that offers flexibility and ease of use to shoppers. However, it’s important to understand the associated charges to make informed financial decisions. In this blog, we will delve into the various charges linked to Flipkart Pay Later, including interest rates, usage fees, processing fees, late payment charges, and foreclosure charges. Let’s explore each of these charges in detail.
Interest Rates:
Flipkart Pay Later EMI transactions incur interest charges ranging from 16% to 22%. These rates are comparable to those of many credit cards. It’s crucial to consider these interest rates while planning your purchases and managing your finances effectively.
Usage Fees:
Usage fees are charged on a monthly basis, based on your Flipkart Pay Later limit and your usage for the month. The fees are calculated as follows:
- Pay Later Account Limit up to Rs. 1000: Charges of Rs. 5 + GST of 18%
- Pay Later Account Limit between Rs. 1000 and Rs. 3000: Charges of Rs. 10 + GST of 18%
- Pay Later Account Limit above Rs. 3000: Charges of Rs. 15 + GST of 18% These fees will be applicable from March 1st, 2023, and will be visible in your subsequent bill.
Late Payment Charges:
A penalty of 6%* of the outstanding due is levied on a monthly basis. The penalty is calculated on the outstanding due as of the 5th of the month. It is important to make timely payments to avoid incurring additional fees and maintain a good credit standing.
Foreclosure Charges:
If you choose to foreclose your EMI loan within the cool-off period, there will be no charges. However, if you foreclose your EMI loan outside the cool-off period, a charge of 3.39% of your unbilled principal outstanding amount will be applicable (exclusive of GST). It’s important to note that there are no charges for Buy Now Pay Later foreclosure. These charges are subject to change as per the lender’s pricing policy and terms and conditions.
Processing Fees:
The processing fee is levied on each Flipkart EMI transaction and varies based on the duration of the EMI plan and the order value. The processing fee amounts are as follows:
- 3 Months EMI: 1.5% of the order value or Rs. 100 (whichever is higher)
- 6 Months EMI: 1.5% of the order value or Rs. 100 (whichever is higher)
- 9 Months EMI: 1.5% of the order value or Rs. 100 (whichever is higher)
- 12 Months EMI: 2% of the order value or Rs. 100 (whichever is higher) Please note that the processing fee will not be refunded for partial cancellation of items. Refunds will only be applicable in the event of a complete cancellation of all items in the cart.
My own experience of Using Flipkart pay later
I will calculate the charges and interest for a specific purchase made using Flipkart Pay Later. Let’s consider a scenario where you have purchased a phone worth Rs. 10,000 and opted for a 3-month EMI option with an installment amount of Rs. 9,000. By analyzing this case, we can determine the processing fees and interest charges incurred during the EMI tenure.
EMI Amount: Rs. 9,000 (for 3 months)
Processing Fee: For a 3-month EMI, the Processing Fee is 1.5% of the order value or Rs. 100, whichever is higher. In this case, 1.5% of Rs. 10,000 is Rs. 150. Since Rs. 150 is higher than Rs. 100, the Processing Fee will be Rs. 150.
Interest Charges: As per the information provided, the interest rate for Flipkart Pay Later EMI ranges from 16% to 22%. Let’s assume an interest rate of 18%.
To calculate the interest charges for each month, we can use the following formula: Interest Charges = (Outstanding Due * Interest Rate) / 12
For the first month: Outstanding Due = Rs. 9,000 (EMI Amount) Interest Charges = (9,000 * 18%) / 12 = Rs. 135
For the second month: Outstanding Due = Rs. 9,000 – Rs. 3,000 (EMI Amount – Amount paid in the first month) Interest Charges = (6,000 * 18%) / 12 = Rs. 90
For the third month: Outstanding Due = Rs. 9,000 – Rs. 6,000 (EMI Amount – Amount paid in the first two months) Interest Charges = (3,000 * 18%) / 12 = Rs. 45
Total Interest Charges = Rs. 135 + Rs. 90 + Rs. 45 = Rs. 270
Therefore, for your purchase of a phone worth Rs. 10,000 with a 3-month EMI of Rs. 9,000 paid through Flipkart Pay Later, you would incur a Processing Fee of Rs. 150 and a total of Rs. 270 as interest charges.
FAQ Relating to Flipkart pay later Charges
Will the usage fee be refunded if I cancel/return some items after paying the bill?
Yes, if the net effective dues become zero, the usage fees will be refunded.
How do I pay the usage fees?
The usage fees will be added to your bill and payable when making a payment.
What is a Processing Fee?
The Processing Fee is a one-time fee charged for each Flipkart Pay Later EMI transaction.
Can I pay my Flipkart Pay Later bill using cash, EMIs, or credit cards?
No, bill payments can be made using UPI or Debit Card.
Can I pay only a part of the bill?
No, full payment of the outstanding amount is encouraged.
Can I change the bill date or due date?
No, bill dates and due dates cannot be changed at this time.
Will the Processing Fee be refunded if I cancel or return items?
The Processing Fee will only be refunded in the case of a complete cancellation of all items in the cart.
How will I know when my bill is generated?
You will receive Email/SMS notifications with the bill details on the 1st of the calendar month.
What are the late payment charges for Flipkart Pay Later?
Flipkart Pay Later imposes a penalty of 6%* on the outstanding due amount, which is levied on a monthly basis. The penalty is calculated based on the outstanding due as of the 5th of the month.
Are there any charges for foreclosing an EMI loan in Flipkart Pay Later?
If you choose to foreclose your EMI loan within the cool-off period, there are no charges. However, if you foreclose the loan outside the cool-off period, a charge of 3.39% of the unbilled principal outstanding amount will be applicable, excluding GST.
How can I avoid additional charges in Flipkart Pay Later?
To avoid additional charges, it is important to make timely payments, manage your usage within your assigned limit, and stay informed about the terms and conditions related to Flipkart Pay Later.
Where can I find more information about Flipkart Pay Later charges?
For detailed information about Flipkart Pay Later charges, you can refer to the terms and conditions provided on the Flipkart website or contact Flipkart customer support for assistance. Click here
Easily Calculate your Flipkart Pay later charges
| Charges | |
|---|---|
| Penalty (Monthly) | 6%* of the outstanding due on the 5th |
| Foreclosure Charges | 3.39% of unbilled principal outstanding (applicable outside cool-off period) |
| Buy Now Pay Later Foreclosure Charges | No charges |
| Usage Fees | Based on Flipkart Pay Later limit and usage (subject to change as per policy) |
| Pay Later Account Limit up to ₹1000 | ₹5 + 18% GST |
| Pay Later Account Limit ₹1000-₹3000 | ₹10 + 18% GST |
| Pay Later Account Limit above ₹3000 | ₹15 + 18% GST |
| Processing Fee (EMI Transactions) | 1.2% of the order value or ₹100 (whichever is higher) |
| Note: | Charges are subject to change as per Flipkart's policies and terms and conditions. |
2 Responses
When un billed amount is generated in flipkart app for 2nd month
Mai 200000 se upar rupeya bhr chuke hai uske bdd bhi Mera abhi tk EMI clear nhi hua hai kyu kitna byaj lagega Mera ab mujhse 1 paisa Dene ka sakan nhi hai