Now buy IndiGo, Jet tickets on EMIs but with a caveat

If you can buy your home or even an iPad on an EMI, then why not an airline ticket? In fact, that's exactly what low-cost carrier IndiGo and full service carrier Jet Airways now offer.

According to a report published inthe Business Today, these two air carries now allow you to buy air tickets via credit cards with payments stretched out over equated monthly instalments (EMIs) of two months.

Increasing competition is making airlines come up with such a strategy. Both the carriers have tied up with HDFC Bank, Citibank and ICICI Bank for this offering. So, if you have credit card with any one of the bank mentioned above, you can buy a ticket and pay back in two instalments.

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You will not only have to pay a processing fee of one percent, but also have to bear a service charge of 14 percent on the ticket.[/caption]

But but don't jump at it as yet, because this does not come free. You will not only have to pay a processing fee of one percent, but also have to bear a service charge of 14 percent on the ticket. However, air carriers are in talks with banks to waive off additional charges, but as of now, you will have to pay the charge. Read the entireBusiness Today story here.

Firstpost take: Though this looks like an innovate sales strategy, we are not too impressed.

For instance if you buy a return Mumbai-Delhi ticket for around Rs 10,122, with processing fees and service charges it will cost you at least Rs 1,500 more.

Unless it's an emergency and you have no option but to travel by air, we think, it's best to stay away for such EMI options as you have to pay around 15 percent more.