Xiaomi has launched a new payment scheme in India, named Xiaomi Easy Finance – XEF.
XEF allows users to pay for their mobile at no-cost EMI, without any additional interest.
Currently, the Redmi 12 Series is eligible under the XEF scheme, which can be availed at Xiaomi’s offline stores across India.
Xiaomi has officially launched its Xiaomi Easy Finance (XEF) Program in India. The scheme offers no-cost EMI options to users on select Xiaomi and Redmi smartphones. Xiaomi says that users can opt for XEF payment through a digital process, without any paperwork.
Xiaomi’s XEF program is in partnership with Axio, a leading Non-Banking Financial Company (NBFC) in India. XEF options will be available at Xiaomi’s partner offline stores across the country.
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Xiaomi Easy Finance Program Launched in India
The Xiaomi Easy Finance, or XEF program allows users to purchase Xiaomi and Redmi smartphones at no-cost EMI. Users will not have to pay any interest while paying for the instalments for the phone.
The eligibility criteria for availing XEF scheme are as follows:
Buyer’s age must be at least 21 years
Buyer must have a valid PAN card
The Aadhaar Card of the buyer must be linked with a phone number, to receive OTP for e-KYC
Buyer must also have a bank account under their name, which will be used to debit EMI every month
XEF does not require any physical paperwork. Users with valid documents can instantly register for the payment scheme, through a completely digital process.
Xiaomi’s XEF scheme is backed by Axio (formerly known as CapFloat), a leading NBFC in India. Currently, Axio does not require users to have a credit history and any buyer with valid documents can apply for XEF. However, Axio reserves the right to approve or decline the offer to the user on a case-to-case basis.
When a buyer opts for XEF payment, the buyer will have to put a 20% down payment of the total cost of the phone, at the time of making the purchase. The remaining amount can be split into 3,6,9, and 12 months of EMIs. No interest will be charged to avail of EMI options.
However, the user will have to pay a one-time processing fee of Rs 399 + GST while enrolling for XEF. Post that, the EMI amount will be directly debited from the user’s registered bank account.
The XEF scheme will also reflect on the credit report of the user, as a consumer loan. When the user completes paying all the EMIs, the loan will be closed in the credit report and other credit bureaus such as CIBIL and Experian.
Xiaomi’s Preventive Measures to Ensure User Pays EMI on Time
It is important to note that Xiaomi has also partnered with Trustonic for its XEF program. Trustonic offers cybersecurity and device-locking solutions to businesses. Devices purchased under the XEF scheme will be secured by Trustonic.
If the user does not pay the EMI on time, then Xiaomi can lock the device remotely using Trustonic. The buyer won’t be able to use the phone until the EMI amount is paid back. Trustonic will also send timely reminders to the buyer to ensure that they do not miss any instalments.
Xiaomi’s XEF scheme is currently available only on the Redmi 12 Series. However, Xiaomi has not specified whether this includes the Redmi Note 12 Series or not. The company says that they will soon add other devices under the XEF program.
Xiaomi’s XEF payment options can only be availed at Xiaomi’s offline stores. This includes Mi Home, Mi Studio, Mi Stores, Mi Preferred Partners, and other select retail stores. The scheme is not available on Xiaomi’s online store.
The XEF program is currently being rolled out in India in phases. Xiaomi says that Tier 3 and Tier 4 towns are the main target for XEF, to offer users more flexible payments for the new smartphone purchase. The company says the XEF scheme will help users upgrade their devices in the upcoming festive season.
