What is BNPL (Buy Now, Pay Later)?

What is BNPL

One of the popular kinds of short-term financing is the BNPL (Buy Now, Pay Later) financing. It makes users eligible to repay the loan after having purchased an asset within a stipulated period of time. The payment usually comes with no interest.

Also known as, Point of Sale (POS) finances or installments, it is equitably flexible and more convenient for users than the traditional loan assets.

How does it work?

To get the facility of BNPL, you can either opt for their online source through an app or other optional method. After purchasing through the appropriate retail service, you have to click the ‘buy now, pay later button’. Thereafter, making a small down payment on the overall purchase, you can easily opt for a loan, through a series of payments to be deducted through EMIs.

In comparison with personal loan, it gives a lot more flexibility to the customers as it lets one consumer repay the loan within a stipulated period of time in lums or through EMIs. Consumers also don’t have to pay any interest while paying such loan, although it may be incurred if the consumer fails to stick to their loan period, or further delay is caused.


To be eligible for a BNPL loan, the consumer has to fulfill some eligibility criteria. They are:-

  • The consumer has to be a resident of India
  • Must be above 18 years
  • Must belong to the tier 1 or tier 2 cities
  • Must have KYC documents in place
  • Maximum age can be up to 55 years.

In conclusion, BNPL increases the affordability of consumers by making payment accessible more easily than that of personal loans. Plus, if one is successful is repayment of loan, it also makes their credit score go high. Altogether, it’s a great way to make your payments flexibly without the need to get dissolved in interests.