What is “Buy Now,Pay Later” ?

Buy Now, Pay Later’ (BNPL) is a type of

short-term financing which allows you to pay
in installments by the end of the stipulated
time period for making purchases . Also
referred to as “point of sale installment
loans,”
What is an Installment Loan ?
An installment loan provides a borrower with a
fixed amount of money that must be repaid with
regularly scheduled payments. Each payment on an
installment debt includes repayment of a portion of
the principal amount borrowed and also the
payment of interest on the debt.
 How does Buy Now
Pay Later function?
Each company have their own terms and
conditions along with their decided interest
rates. However, the process is almost the same.
You pick an object that you like and at
checkout counter request a buy now, pay later
option.
Once your request is approved, you have to make a small down
payment. Most companies ask for a down payment of 25 % of
the total cost of that particular object
You then avall loan and pay the amount in a decided number
of installments. Your payments can be made through either
pre- dated cheques deductions from your account, or through
your debit cards.
Advantages of BNPL
Increases affordability
Instant access to credit
Frequently Zero or lower interest rates
Improves your credit Score
 Disadvantages of BNPL
Payments may hard to track
Payments may continue even if

item is returned
Missing or late payment results in late fee, damages credit
score
No rewards or cashback earned while shopping
 Conclusion
Every coin has two sides. So do buy now pay later service.
The idea behind buy now, pay later is that consumers can
get the things they need immediately while also getting a
little extra time to pay for them. Buy now, pay later
financing may seem appealing if you can’t or don’t want
to foot the bill for something all at once