Buy now, pay later (BNPL) is a financial tool that allows you to purchase something now and pay for it later on. It is a popular alternative for paying for things using cash or a credit card. This service has become popular because of its interest-free instalment options, flexibility, and ease of use.
Companies such as Amazon Pay Later, Zest Money, and others often offer BNPL services. Customers can more easily purchase goods through these platforms without having to pay the entire amount in advance.
Buy Now, Pay Later EMI
BNPL services work wonders for people who can't spend a big amount at one time. Various companies let users buy their items or take benefits of their services and pay later with the option of EMIs. This lets users split their purchases into smaller, manageable payments.
The first step is to choose a BNPL provider and then pick an EMI plan as per your convenience, such as 3, 6, 9, or 12 months of repayment period. Some companies also offer no-cost EMIs.
To avoid late fees, make the payments on time with easy monthly instalments. Timely payment will not only save you from extra expenses but also help you improve your credit score.
Moneycontrol has partnered with eight lenders to provide you with quick, 100% digital loans up to Rs 50 lakhs. You can get the loan in three steps: enter your information, complete the KYC process, and set up an EMI term. Depending on your work status, interest rates can start as low as 10.5% annually.
Buy Now, Pay Later Apps in India
Here are some popular buy now, pay later apps in India:
1. Amazon Pay Later
You can buy anything on Amazon and have the option to pay in EMIs later. The company offers 3 to 12 months of EMI options. No-cost EMI option is also available on selected products.
2. Flipkart Pay Later
It is similar to Amazon Pay Later, but to use this, you need to buy items from Flipkart. You can convert your purchases into EMIs for up to 48 months.
3. ICICI PayLater
ICICI Bank gives its customers a short-term interest-free credit service to manage their expenses. The limit of PayLater Account can range between Rs 7,500 to Rs 2,00,000, based on your eligibility.
4. Zest Money
This lets you shop from various merchants with no-cost EMI options, even if you don’t have a credit card. You can get a credit limit of up to Rs. 2 lakhs. It also provides 3 to 12 months of EMI without a credit card.
5. Simpl
There is no EMI option available for this app as it lets you pay for multiple small purchases together at the end of the month. However, it does let you split bills over 3 months.
6. LazyPay
It gives you an option for instant credit for online and offline purchases and allows you to settle your payments once in 15 days. You can also use EMI facility of 3, 6, 9, 12 months.
Moneycontrol has partnered with eight lenders to offer fast, fully digital loans up to Rs 50 lakhs. The application process is easy to follow: enter your details, complete the KYC verification, and choose an EMI plan. Interest rates can start as low as 10.5% per year, depending on your employment status.
Buy Now, Pay Later Down payment
A down payment is an amount that must be paid in advance when making a purchase using BNPL. The remaining amount is then divided into instalments (EMIs).
For instance, if you pick the option of BNPL to purchase a smartphone for Rs 30,000 with a 10% down payment, you will have to pay Rs 3,000 in advance and the remaining Rs 27,000 in instalments.
Not all BNPL providers ask for a down payment. Some offer zero-down payment options, while others may require it based on your creditworthiness, the price of the product, and the BNPL provider’s policies.
Conclusion
The Buy Now, Pay Later option is a beneficial option for people who are looking for flexibility and convenience, as it comes with instant approval and an easy process. Other than this, it helps consumers make purchases instantly while also helping them manage cash flows. Although BNPL offers various benefits like zero interest payments and easy approvals, it comes with various risks, such as late fees. Also, it may lead to financial trouble if it is not used wisely. Further, not all purchases may be eligible for buy now pay later.
Disclaimer
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