Buy now pay later v/s Personal loan: Buy Now, Pay Later (BNPL) is a sort of short-term financing that allows clients to make purchases and pay for the purchase later, usually without interest. BNPL agreements, often called as "point of sale installment loans," are quickly becoming popular as a form of payment, especially for internet purchases.
Personal loans and credit cards were our main options for unsecured credit products until a few years ago. Buy Now, Pay Later loans are now available from merchants and fintech companies. The relevant borrowers can access these options with only a few touches on their phone displays. Fill out your personal information, complete the KYC process, and you could have your loan approved in minutes.
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Know BNPL and how does it work?
The only practical distinction between BNPL service providers is in their terms and conditions. This is how it usually works:
Make a purchase from a partner store.
It is best to choose the "Buy now, pay later" option.
Put down a small part of the overall purchasing price.
The outstanding amount will be deducted through a series of interest-free EMIs.