How to Apply for the Buy Now Pay Later Facility and Pay for Purchases in Easy Instalments

 

Buy Now Pay Later (BNPL) or get now pay later is a type of short-term financing that allows customers to make purchases and pay at a future date, in easy installments, often interest-free. It is also referred to as the point-of-sale installment loan.

The concept of the buy now pay later scheme is that customers can buy things they need immediately by only making a partial payment (down payment) while also getting a little more time to make the full payment in installments for the purchase made. On the other hand, the seller receives full payments for the goods sold.

How does buy now pay later work?

Also known as get now pay later, the facility varies from each company based on their terms and conditions. Generally, this is how the get now pay later facility works:

●      Once a purchase is made at a participating retailer, and when you opt for the buy now, pay later at checkout.

●      After approval, you make a small down payment of maybe 25% of the purchase value.

●      And then, the remaining due amount is paid in interest-free installments.

●      You can pay online, pay through check, or payment can also be deducted from your debit or credit card automatically.

How to apply for the buy now pay later facility?

●      Visit the buy now later application page at the respective online shopping center.

●      Basic information like name, address, phone number, date of birth, email address, monthly income, etc., has to be filled in.

●      Then you can view the available offers from various lenders.

●      You can then choose the get now pay later facility and tenure of repayment best suited to your needs.

●      A representative will contact you for the remaining process and document submission.

Documents required:

⋅        Identity proof – Aadhaar, PAN, Voters ID, etc

⋅        Address proof – Utility bills, ration card, etc

⋅        Income proof – Salary slip, Form 16, bank account statement, etc

Things to consider before opting to buy now, pay later:

●      Credit limit – The credit limit with BNPL is relatively low compared to credit cards.

●      Interest rate – Even though BNPL offers zero interest, not all purchases are interest-free.

●      Repayment – Before making the payment, check for different and convenient repayment options that suit your needs. Also, know the part payment options and pre-closure charges.

●      Additional discounts – Most retailers offer special discounts and cashback for BNPL when opted from a specific lender, so check for discounts/cashback before purchasing.

●      Acceptance range – Check with the lender if BNPL is retailer-specific or online store specific.

Advantages of the buy now pay later facility:

●      Convenient – It is one of the easiest and most convenient ways of making a payment after purchasing something.

●      Zero/minimal interest -  BNPL offers very minimal or zero interest on the purchases made.

●      Credit score not required – Unlike other loan options, BNPL doesn’t need any good credit or a higher credit score for approval of payments.

●      Quick approval – Payment approval is done instantly, hence making the whole process seamless.

●      Minimum down payment – BNPL requires a small down payment of maybe 25% to make the purchases.

●      Minimum documentation – BNPL requires very minimum documentation to process the payments.

●      Flexible tenure – BNPL offers tenures that could range from a few days to months, making it the most flexible payment option.

●      Exciting offers -  While purchasing from an online shopping center, BNPL offers several offers such as cashback, discounts, etc.

●      Secure transactions – Since BNPL only offers secured loans, all purchases are safe and secure.

●      Increased affordability – FNPL only requires partial payment as a down payment, and the rest of the amount will be converted into easy installments, making it easy for customers to buy products.

●      Transparency -  BNPL doesn’t include any hidden costs and follows a transparent and low-cost price model.

Eligibility criteria for buy now pay later facility:

●      Applicants must be aged above 21 years.

●      Must have a bank account with updated KYC.

●      Must be a salaried or fixed-income individual.

●      The minimum monthly income of the applicant should be as per the pre-defined criteria of the lender.

The future of buy now pay later:

The concept of purchasing goods without having to pay the entire value or huge interest makes get now pay later the most effective way of making payments. Easy approvals, hassle-free documentation, secured payment method, and no-cost EMI's make buy now pay late become a preferred payment option in the future.

Buy now, pay later/ get now, pay later is the easiest way to purchase a product without paying the entire value or huge interest. You must make a small downpayment, opt for installments that suit your criteria, and complete the documentation process. Your payment will be approved in minutes if you are an existing customer.

Buy now and pay later is become a more prominent way of making payments due to its convenience in applying and approving, easy disbursement and installments, and lesser interest rates.