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Low Cost Emi

About Low Cost EMI Offers

Provide Low Cost EMI Offers to customers at the Razorpay Checkout.

With Low Cost EMI, you can now strike the perfect balance between providing affordable financing to customers while maintaining a sustainable financial model. You can decide the cost to subvent for each EMI tenure and the customer bears the remaining cost. This approach ensures that customers enjoy the benefits of EMI at an affordable price, helping you minimise the overall cost.

Handy Tips

You can create Low Cost EMI Offers on Credit and Debit card EMIs only.

Advantages

  • Attracts more customers put off by high upfront costs, resulting in up to 20% sales boost.
  • Businesses maintain financial health by sharing EMI costs with customers, thus balancing their books effectively.
  • Offering extended EMI plans encourages customers to afford and consider premium products, ultimately boosting the average order value by up to 30%.
  • Razorpay's user-friendly offer engine streamlines Low Cost EMI implementation with a few clicks, reducing entry barriers for businesses.

    • Example

    Let us consider the example of a customer buying a mobile phone worth ₹15,000 on Low Cost EMI on a 3-month EMI period. The bank charges 16% interest per annum.

    Calculation of EMI

    The Low Cost EMI calculation is given below:

    ComponentsAmount/Interest Rate/Months
    Cost of mobile phone₹15,000
    Tenure3 months
    Annual interest rate16%
    Effective interest rate for 3 months2.61%
    Interest subvented by you2%
    Discount offered @ 2%(-) ₹300
    Amount paid to you after discount₹14,700

    Watch Out!

    Razorpay pricing is not included in this, it is applied in addition to the above amount.

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