Fintech company Capital Float and SpiceJet have joined hands to provide customers with the ability to pay for their air tickets in instalments. Most banks already provide their credit cardholders with the opportunity to pay monthly instalments of their expenditures and this tie-up between SpiceJet and Capital Float is sure to help those who do not own a credit card.
An Accessible and Affordable Travel Option
The Chief Commercial Officer of SpiceJet said in a statement that this initiation will allow customers to avoid delays in family vacations or travels because of the ticket prices. The scheme has been launched to provide convenience to the customers. Customers will now be able to pay for the tickets in instalments according to their budget. Moreover, she added that the users can also pay off loans before the ending of the decided EMI period without getting charged with any foreclosure expenses.
According to the guidelines, for an EMI of a 3-month period, customers won’t receive any interest charges, however, on a period of 6/9/12 months, an interest of 24% will be charged on the ticket price on a reducing balance basis per year. For a user to avail of the EMI option on the ticket, the minimum ticket price has been set to Rs 900 and the maximum ticket price has been set to Rs 40,000 which may see reforms in the future.
Just as every other airline, SpiceJet was too affected by the impacts of Covid-19 on the industry and even reported a loss of Rs 729 Crore in the first quarter of FY22. Additionally, the airline also has dues to be paid to the creditors which is a thing of concern. However, the recent recovery of the industry as a whole is sure to aid the airline is increasing its seat occupancy. With this tie-up, SpiceJet will be looking forward to attracting more customers in the coming future as it gives them access to affordable and convenient air travel options.