BNPL - Buy Now Pay Later on Easy EMI with Insta EMI Card

Buy Now, Pay Later (BNPL) is a payment option that allows you to purchase products or services instantly and defer the payment to a later date. With BNPL, you can split your purchase into easy EMIs without the need for a credit card. It offers flexibility and convenience, enabling you to manage your expenses better without immediate financial strain. The Bajaj Finserv Insta EMI Card acts as a BNPL tool, giving you access to a pre-qualified card loan limit and allowing you to convert purchases into easy EMIs across 1.5 lakh+ partner stores, both online and offline.

What is BNPL (Buy Now Pay Later)?

The concept of "Buy Now, Pay Later" (BNPL) has emerged as a contemporary and consumer-friendly approach to retail transactions, providing individuals with a flexible alternative to traditional payment methods. In essence, BNPL allows consumers to make immediate purchases while deferring the payment to a later date. This modern payment model is designed to accommodate diverse financial preferences and circumstances.

When utilising a Buy Now, Pay Later system, consumers can acquire goods or services without the need for an upfront, one-time payment. Instead, the total cost is divided into manageable instalments, often spread over several weeks or months. This flexibility to ‘buy now, pay later’ appeals to individuals who may prefer a more gradual and budget-friendly approach to settling their bills.

The beauty of BNPL lies in its ability to cater to immediate needs and desires without imposing financial strain. It is particularly beneficial for those facing temporary budget constraints or seeking greater control over their cash flow. However, it is important to note that while BNPL offers interest-free periods and easy access, missed or delayed payments can lead to late fees and negatively impact your credit score. Responsible use of BNPL services can help maintain financial stability and enjoy a seamless shopping experience.

As the retail landscape continues to evolve, the Buy Now, Pay Later concept exemplifies a consumer-centric paradigm shift, offering convenience, accessibility, and a personalised payment experience in the ever-evolving world of commerce.

Let us understand BNPL’s meaning, and explore how BNPL works, its advantages and disadvantages, current trends, and how it influences your credit score.

How does Buy Now, Pay Later work?

The Buy Now, Pay Later (BNPL) system offers instant credit to help you manage expenses when cash flow is tight. Here's how it works:

• Traditional Roots: In India, BNPL has its origins in the 'Udhar Khata' system, where local 'kirana' stores maintained manual credit ledgers, allowing customers to buy on credit and repay later.
• Instant Credit: BNPL provides immediate access to credit, enabling purchases even when funds are low.
• Versatile Use: You can use BNPL to buy groceries, household items, medicines, or your favourite products without needing upfront cash.
• Flexible Payments: The total purchase amount is split into manageable instalments, often with interest-free periods.
• Easy Application: Minimal documentation and quick approval processes make BNPL a convenient financing option.

Features of Buy Now, Pay Later payment

Essentially, BNPL providers offer you the option to repay in equal monthly instalments over a specified period. Furthermore, this ‘shop now, pay later’ scheme typically lets you pay in zero- or low-interest instalments.

For example, Bajaj Finserv offers the Insta EMI Card – a sophisticated take on the ‘pay later’ concept. Using this digital card, you can buy items on Easy EMI, and repay the amount in low-cost instalments spread over many months.

However, if you fail to make the payment within the timeframe, the lender may charge interest on the outstanding amount. Any further delay can significantly impact your credit score.

Check features and benefits of Insta EMI Card

How to avail of ‘Buy Now Pay Later’ on EMI?

Here is how you can purchase items through BNPL on EMI using the Insta EMI Card.

• Step 1: Visit any of the leading e-commerce platforms.
• Step 2: Select the product you wish to purchase and click ‘Buy Now’.
• Step 3: Choose the ‘Buy Now Pay Later’ option and select the Bajaj Finserv Insta EMI Card.
• Step 4: Provide the details of your Bajaj Finserv Insta EMI Card and select your preferred Easy EMI plan.
• Step 5: Enter the OTP to confirm the purchase.

You can buy your favourite premium laptop or the latest gaming console in just four simple steps. If you think this sounds too good to be true, you still have not heard about the benefits offered by BNPL.

Benefits of BNPL

BNPL payments offer several advantages. Some of them include the following.

• Convenience: BNPL allows you to purchase items without paying the entire cost upfront. This makes it affordable to buy high-end items, even when you are on a tight budget.
• Little to no interest or fees: Most BNPL service providers offer zero or low interest charges on Insta EMI Cards This means you can spread the cost of the purchase without incurring additional interest charges.
• Flexibility: You can choose a repayment period that is convenient for you, as most companies offer tenures ranging from a few weeks to several months.
• Easy to use: BNPL payments are secure, simple, and transparent, and most companies facilitate a seamless checkout process. You will not have to fill out lengthy forms or provide much information.

Insta EMI Card features and benefits

Eligibility Criteria for Buy Now Pay Later (BNPL)

To avail of the Buy Now Pay Later facility, you must meet certain eligibility requirements. For example, if you want to apply for the Bajaj Finserv Insta EMI Card, the eligibility criteria include:

• You must be an Indian citizen.
• You must be between 21 years and 65 years.
• You must be gainfully employed with a regular income source and show relevant documents.
• You must have a good credit score.

You must also provide KYC documents and a signed ECS mandate to access BNPL financing via the Bajaj Finserv Insta EMI Card.

Check documents required for Insta EMI Card

How ‘Buy Now, Pay Later‘ (BNPL) affects your credit score

Buy Now, Pay Later (BNPL) services can have both positive and negative impacts on your credit score. When used responsibly, BNPL may not directly affect your credit score since most providers do not report payment activity to credit bureaus. However, missed or late payments can damage your credit score and incur late fees. Additionally, some lenders may conduct a hard enquiry on your credit report when you apply for BNPL, which can temporarily lower your score. On the flip side, successfully managing BNPL can demonstrate responsible credit behaviour and potentially improve your credit score over time. It is crucial to understand the terms and conditions of BNPL agreements and ensure timely payments to mitigate any negative effects on your credit score.

5 Key factors to consider for safe purchase with BNPL

• Understand BNPL terms: Check if the service is interest-free or includes hidden charges. Review repayment deadlines carefully.
• Assess financial discipline: Avoid impulse spending and ensure you can meet BNPL payments without compromising essential expenses.
• Review fees and policies: Look for late payment fees, processing charges, and refund policies. Compare providers for transparency and minimal costs.
• Check credit impact: Missed payments may harm your credit score if reported to agencies. Confirm repayment deadlines are manageable.
• Evaluate purchase necessity: Use BNPL for planned, essential purchases rather than impulsive buys to avoid unnecessary debt.

Difference between BNPL and Credit Card

Interest rate comparison between BNPL and credit card

Below is a detailed comparison of interest rates and related features between Buy Now Pay Later (BNPL) services and credit cards:

Credit cards generally offer higher interest rates but come with added benefits like rewards and consumer protections. BNPL services, while offering lower interest rates, may lack comprehensive consumer safeguards and reward systems.

Future of BNPL financing and trends

The rise of partnerships between financial institutions and retailers is the trend which has led to Buy Now Pay Later as one of the popular payment options. A few companies also offer exclusive deals and discounts to consumers using BNPL payments. This has contributed to the growing popularity and penetration of BNPL, making it more accessible to customers.

BNPL service providers are now expanding into new markets, offering new products and services. For instance, Bajaj Finserv Insta EMI Card offers Buy Now Pay Later option for travel and let you spread the cost of your holiday over several months. You can also use the ‘Buy Now, Pay Later’ facility for healthcare expenses, and easily pay for medical treatments and procedures.

The ‘Buy Now, Pay Later’ plans extend several benefits, making expensive items accessible and affordable. Bajaj Finserv is one of India's top BNPL service providers, making it easy to own high-end items using the Bajaj Finserv Insta EMI Card. With a simple application process, easy-to-meet eligibility requirements and attractive Easy EMI plans, this digital card makes high-value purchases pocket-friendly.

Pros and cons of ‘Buy Now, Pay Later‘ (BNPL)

Buy Now, Pay Later (BNPL) services offer convenience and flexibility in making purchases, but they come with their own set of advantages and drawbacks. Understanding the pros and cons of BNPL is essential for making informed financial decisions and managing your spending effectively. Here is a detailed comparison of the Pros and Cons of BNPL: