Buy Now Pay Later

Buy Now, Pay Later (BNPL) is a unique payment facility. It helps you purchase products or use services without the need to pay the total cost upfront. True to its name, this option lets you buy products now and pay the cost in instalments.

You can repay the total cost in fixed amounts across a chosen tenor. It can range from a few weeks to months. Over time, BNPL has become a popular payment system, with most retailers providing this convenient solution.

That said, you have to be cautious before opting for this payment method. Make sure you read the terms and conditions properly and understand how it works.

This credit facility comes with different terms and conditions based on the financial company. Once you complete your purchase, you receive a statement detailing the total amount you owe. 

This total amount is inclusive of interest and fees, if any. Making a down payment helps reduce the EMI burden, helping you manage your monthly finances. It may also be mandatory, based on your chosen payment plan.

The monthly amount is debited from your bank account or debit/credit card based on the option you provide.

This financing facility offers you greater flexibility and convenience when making high-value purchases. There are multiple advantages to using this option. Here are a few of them:

• Helps you make big-ticket purchases without depleting your savings

• Enables you to improve your credit score when you make timely repayments using the BNPL option

• Allows you to split bills across a comfortable tenor

• The application process is a straightforward and easy 

The BNPL option allows you to split your payments into equal monthly instalments over a set period. These plans often include interest-free payments, making them an attractive payment method.

For instance, the Bajaj Finserv Insta EMI Card allows you to purchase products on easy EMIs and repay over a selected tenor without additional costs.

However, missing an EMI payment could result in interest charges on the remaining balance. Continued delays may also harm your credit score.

Meeting certain eligibility parameters is crucial before you can opt for a ‘Buy Now, Pay Later’ facility. Here are some of the criteria you need to fulfil:

• You must be an Indian citizen

• You must have a bank account

• You need to provide valid KYC documents

• You must be a salaried individual or have regular income 

• You must have a good credit score

• You must be between 18 and 65 years of age 

There are some key differences between a credit card and a BNPL facility. These include: 

Here’s how you can purchase items through BNPL facility, that is on easy EMI using the Insta EMI Card:

1. Visit leading e-commerce platforms

2. Select the product you want to buy and click on 'Buy Now'

3. Choose the 'Buy Now, Pay Later' option or EMI payment option and opt for the Insta EMI Card

4. Enter your Bajaj Finserv Insta EMI Card details and pick your preferred EMI plan

5. Confirm the purchase by entering the OTP you may have received

The BNPL facility can positively and negatively impact your credit score. When used responsibly, there may not be a direct impact. However, missed or late payments can harm your credit score and result in additional fees.

Here are some key points you can consider:

• Understanding the terms of BNPL agreements is crucial

• Lenders may conduct hard inquiries that can temporarily lower your score

• Successfully managing BNPL can improve your credit management record

• Timely payments help mitigate negative effects on your credit score

Partnerships between financial institutions and retailers have propelled BNPL into a widely preferred payment option. Many companies offer exclusive deals for customers using BNPL, boosting its accessibility and popularity.

BNPL providers are now venturing into new markets with innovative offerings. For instance, the Bajaj Finserv Insta EMI Card lets you spread the cost of travel and day-to-day expenses over multiple months.

These plans make it easier to afford big-ticket items. As one of India's leading BNPL providers, Bajaj Finserv streamlines the purchase process. You can get its EMI card with a simple online application process by meeting simple eligibility criteria. 

Then you can enjoy an instant loan of up to ₹3 Lakhs and make purchases more manageable by choosing attractive easy EMI plans. The best part is that you do not need to pay any additional interest. 

BNPL facility provides convenience and boosts your spending power. However, it also has its disadvantages. Understanding the pros and cons can help you make informed financial decisions. These include: