About Buy Now Pay Later in Hyderabad
Buy Now Pay Later Hyderabad is a recent credit facility that can be availed by the city’s young shoppers. This credit mechanism is available to all in the city but is especially beneficial to those who prefer to shop online. Those who don’t own a credit card can gain. maximum benefits from this scheme.
While loans and credit cards have a long list of eligibility criteria to be met, those looking for easy credit in Hyderabad can turn towards the buy now pay later option. The BNPL scheme was primarily introduced to cater to those who cannot easily avail of credit cards, thus ensuring higher purchasing power for lower and middle-income groups.
Buy now pay later Hyderabad – what is it?
Buy now, pay later (BNPL) is a type of short-term credit finance that lets shoppers purchase products or services while paying for them at a future date. In most cases, the repayment can be done interest-free. BNPL schemes are also known as "point of sale installment loans”. These are fast gaining popularity in cities like Hyderabad especially among those who prefer to shop online.
Buy now pay later Hyderabad – how does it work?
Buy now pay later Hyderabad schemes may vary across different providers as far as terms and conditions are considered. However, here are some of the commonly observed characteristics of these schemes:
- A buyer can make a purchase at a retailer that offers buy now, pay later. At checkout, the buyer can opt for this scheme and may make the payment for the purchase at a later date.
- If given an approval, one can make a small portion of the total purchase amount as a down payment.
- The remaining purchase amount can be paid off in a series of installments, generally interest-free.
- The payment can be made via a cheque, bank transfer, debit card, UPI, etc.
While both BNPL and credit cards involve delayed payments, using a credit card to pay for purchases requires the borrower or buyer to make the minimum payment that is due on the card every month. The remaining due amount will attract interest accrual until it is paid off in full.
On the other hand, BNPL schemes usually don't charge interest or fees. However, these come with a fixed repayment schedule ranging from several weeks to months. This is told to the borrower upfront and also how much he/she needs to pay each time. It is something similar to an unsecured personal or consumer loan.
Also Read: Credit Cards Vs Buy Now Pay Later Which Is The Better Option
Buy now pay later Hyderabad – what should you know before using?
Before availing of a BNPL scheme, there are certain factors that buyers must be aware of. Listed here are some of them:
- A buyer must understand the exact repayment terms associated with a BNPL scheme that he/she is agreeing to. These can differ for every company. Some providers may require repayment of the balance through biweekly payments while extending it to a month. Others may offer a three-month time frame or even longer but may charge some interest rate.
- One must also know how the repayment will work so that it can be planned without impacting one’s budget. This way one can check whether it is affordable or not. Missing out on payment towards a buy now, pay later scheme can attract late fees. Also, late payment can be reported to the credit bureaus thereby impacting credit score.
- It is important to keep in mind that while some BNPL schemes may approve 0% interest for a buyer, it is never guaranteed. These schemes can charge interest on purchases that may be much higher than a credit card. Also, unlike a credit card, one does not earn any rewards on purchases made through BNPL.
Conclusion
To conclude, a buyer must consider any specific return policies associated with buy now, pay later as it can affect his/her ability to return a product that has been purchased. It's possible that the online portal does not allow the buyer to return the product while the buyer cannot cancel the buy now, pay later arrangement. Thus, all these terms and conditions should be considered before opting for buy now pay later Hyderabad.
FAQs
1. What companies offer to buy now and pay later?
Currently, in Hyderabad, many local companies including Simpl, Paytm, LazyPay, ePayLater, Flexmoney, ZestMoney, BharatPe, etc are offering this scheme and have started giving tough competition to credit cards.
2. How do I get BNPL in Hyderabad?
To avail of BNPL in Hyderabad, one must check if the online portal or retailer has a tie-up for this scheme offering. If available, the merchant may allow the buyer to opt for the scheme while making payment for the purchases.
3. Does BNPL affect credit score?
As credit bureaus in India have started using BNPL usage data, there can definitely be an impact on the credit score depending on the usage of the scheme.
4. What is meant by buy now, pay later?
As the name suggests, buy now pay later is a credit mechanism in which a buyer can purchase a product or service but make the payment for the same at a later date through installments over a fixed tenure.
5. Can you buy now, pay later with Amazon?
Amazon Pay Later is part of Amazon’s buy now pay later offering in association with one of the company’s third-party lending partners, IDFC FIRST Bank. It offers a seamless checkout process to buyers on Amazon.in.
6. Why buy now, pay later is good?
BNPL is something similar to a credit card. It acts as a credit facility in which a buyer can shop now but pay for it later. However, BNPL too has some flaws such as high interest cost in case of delayed repayment.
7. What will Flipkart pay later?
Flipkart Pay Later is a BNPL payment scheme offered on Flipkart. Under this option, one can shop for products any number of times without paying during the purchase. Buyers can pay the total amount due at once or in EMI's using the BNPL scheme offered by the company.