MakeMyTrip, the online travel booking company has teamed up with Capital Float, a digital lending platform for a new payment method for its users. Customers will now be able to use EMI with zero down payment and zero percent interest to book hotels and flights including international travel. As part of the announcement, the company revealed that the credit limit for each user is limited to “up to two lakhs”. After making use of the payment option, users can then easily payback in “easy monthly installments of up to nine months”.
The company revealed that this new payment method is only available for “select customers” as part of an “invite only” program. If you are a selected user and can see this option then you need to go through a two-step process to set a credit limit to your account. MakeMyTrip also revealed that the feature will be rolled out to its customers in a phased manner and about 10 million “eligible customers” can try this new method as part of phase one.
The highlight of this new method is that there is no hidden cost, down payment or interest and customers will need to pay the exact amount over the 9 month period that they initially used. Another important factor here is that this option will not be limited to MakeMyTrip customers based on their existing credit rating which may push banks to reject them. However, the company did mention that it will assess the actual credit limit for a user based on their transaction history on the travel booking platform along with a record check from the Credit Bureau.
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CEO and co-founder of MakeMyTrip, Rajesh Magow issued a statement saying, “As India’s one-stop travel shop, we have the capability to deploy advanced machine learning and big data analytics to offer easy travel finance options and help customers cut through time-consuming paperwork to sanction and process the credit. This tech-powered credit solution will help fulfill the need for access to credit for a large number of unserved or underserved customers.”
Co-founder for Capital Float Sashank Rishyasringa also stated, “We are excited by the potential of our partnership with MakeMyTrip as it is a first-of-its-kind travel financing in India. With this product, we have retained an excellent customer experience at the core of the offering, as customers can avail zero cost travel finance from Capital Float with just a few clicks.”