Buy Now Pay Later (BNPL) is a payment option that allows you to make a purchase without having to pay out of pocket. In most cases, you sign up with a firm that provides this service, and they pay you when you make a purchase.
However, after the lender makes a payment on your behalf, you must refund the money within a certain time frame. You have the option of paying it in one single sum or in no-cost Equated Monthly Installments (EMIs). If you do not pay the loan within the specified repayment period, the lender will be required to charge you interest. Any further delay could have a negative influence on your credit score.
How does the BNPL system work?
The main difference between BNPL service providers is their operational model, which is based on terms and conditions. This is how it normally goes down:
Make a purchase at one of the partnering stores.
Choose 'Buy now, pay later' as your payment method.
Pay a modest portion of the total purchase price as a down payment.
The balance will be paid down in a series of interest-free EMIs.
Note: EMI payments can be made by bank transfer, check, credit card, debit card, or direct debit from a bank account.
Benefits of BNPL
The following are some of the advantages of BNPL:
Reduces the cost of living
Credit is available immediately.
Transaction is safe and secure.
You have the option of selecting a repayment period.
EMI at no cost
Process that is simple and transparent
Criteria for Buying Now and Paying Later
To use the Buy Now Pay Later option, you must meet the following requirements:
You must be an Indian citizen.
A big tier 1 or tier 2 city must be your home.
You must be at least 18 years old. In some circumstances, the maximum age of eligibility is 55 years old.
You have to be a salaried employee.
You must have a bank account as well as all of the necessary KYC documents.
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