SpiceJet launches 'Book Now, Pay Later' for customers in partnership with select banks

India's second-ranked low-cost carrier SpiceJet today said it had introduced a 'Book Now, Pay Later', option enabling flyers to pay through an equated monthly installment (EMI) scheme.

This offer allows passengers to save up to 70 per cent interest cost reduction on deferred / delayed payment interest costs relative to traditional credit card fees.

This scheme is valid on India-issued credit cards of Axis Bank, HSBC Bank, Kotak Bank, and Standard Chartered Bank. other banks will be added shortly.

Passengers holding credit cards issued by these banks can pay as per their own preference of schedule that may vary between three and 12 months, at interest rates in the range of 12-14 per cent, compared to typical credit card interest rates in excess of 36 per cent.

For example, for a ticket costing Rs 5,000, this scheme can result in savings of over Rs1,000 in terms of interest charges relative to credit cards for a 12-month deferred payment plan, SpiceJet said in a statement.

SpiceJet's chief marketing officer, Debojo Maharshi, said, ''Providing customer convenience and enhancing options through unique travel schemes and offers are central to SpiceJet's philosophy. 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''.

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.