Interest free shopping option

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The trend of BNPL means Buy Now and Pay Later has increased a lot here. Many banks are giving such offer. E-commerce companies like Amazon, Flipkart also offer BNPL. You can pay the amount at a later date during the interest free period. BNPL service provider will settle the bill with the seller on your behalf at the time of purchase. This mode of credit payment is becoming popular among the cash-strapped younger generation, who may not have access to a credit card, can borrow using various BNPL apps.

How BNPL Works

Many companies and apps offer the option to buy now and pay later. Each has its own set of terms and conditions. However, most of them follow a similar process.

  • Buy something from a store offering BNPL option.
  • Select the Buy Now – Pay Later option at checkout.
  • To determine your eligibility, the vendor will initiate the KYC process with the BNPL service provider.
  • If your request is approved, you can use BNPL mode to make payment to the vendor (only up to the credit limit provided to you).
  • You have to pay the amount to the BNPL service provider on a predetermined date.

When can you opt for BNPL?

  • If you spend a lot, you can consider BNPL. This can save you from unnecessary financial stress.
  • If there is an urgent need for the product you want to buy, but you do not have the required money, you can use BNPL.
  • If you do not have any loan then you can think of opting for BNPL.