Indian travellers can now access an EMI scheme that allows them to buy now pay later. Such a scheme was rolled out in line with the fact that the travel restrictions concerning the Covid-19 pandemic have been eased recently. Therefore, a lot more people are wanting to travel to different locations and this is why many travel companies are trying to take advantage of it. Thus, ‘Buy Now Pay Later’ schemes have come into existence by organisations like Yatra.com and MakeMyTrip.
What Is The Buy Now Pay Later Scheme?
The Buy Now Pay Later travel scheme allows travellers to sign in and pay for a travel plan through a travel website or a loan provider. In this case, they need to pay the full amount in EMIs until they repay the entire amount along with interest. These payments can be made through AutoPay facilities for which you need to provide bank or debit card details. The interest rates would be based on your travel plan or the company you are opting for.
Himank Tripathi, an Industry Expert, talked about the topic to FE travel and said that:
According to data by Yatra.com, it saw an increase in enquiries for travel loans on air travel by 25% to 27% compared to the previous quarter. The average size of such loans ranges between ₹14,000 and ₹15,000, however, travellers can avail of a loan of up to ₹60,000 to ₹70,000 for international trips. The company spokesperson, quoted by FE travel, said that:
In addition, MakeMyTrip has also seen a rise in the use of the Buy Now Pay Later travel scheme as a payment option in recent years. TripMoney, which is a Fintech subsidiary of MakeMyTrip, has witnessed a 4X growth in the BNPL scheme section in the past two years. A representative of the company said:
Indian travel experience has surely been elevated due to the incorporation of the BNPL scheme in it. In addition, we can also expect alterations in the working of the industry as this payment option gains further popularity.