Personal Finance
Point-of-sale instalment loans known as "buy now, pay later" agreements let customers make purchases and pay for them later. It is the latest trend among millennials and GenZ.
Updated : Feb 04, 2023, 06:51 AM IST | Edited by : Maitry Kothari
Buy Now, Pay Later (BNPL) is a type of short-term financing that enables customers to make purchases and pay for them later, frequently interest-free. BNPL agreements, often known as "point of sale instalment loans," are quickly gaining popularity as a form of payment, particularly for online purchases.
Prior to a few years ago, our only options for unsecured credit products were personal loans and credit cards. Merchants and fintech companies now offer loans that are Buy Now Pay Later (BNPL). With just a few taps on their phone displays, the appropriate borrowers can access these possibilities. Fill out your personal information, finish the KYC process, and receive loan approval – sometimes within minutes.
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How does BNPL work?
The sole practical difference among BNPL service providers is in the terms and conditions. This is how it typically goes:
What is the difference between BNPL and Personal Loan?