Buy Now Pay Later (BNPL) : Pay Later Made Simple For Everyone

This is a small loan which you take while shopping. You do not have to pay the entire amount at once. You pay it in small installments like every week or every month.

Example : If you are buying a mobile worth ₹10,000, you will not immediately pay ₹10,000 for it. You can buy it through BNPL and pay the money later in 3 or 4 parts of ₹2,500-₹3,000. 

(Commonly used for : Smartphones, Branded clothes, Shoes, Electronics, etc.) 

How does BNPL works :

• You Select a Product

You go to an online shopping site or a physical store. You choose the item you want — for example: smartphone, laptop, Branded shoes etc. 

• Choose “Buy Now, Pay Later” at Checkout

When you reach the payment page, you will see many payment options like Debit Card, UPI, Net Banking, EMI, etc. These options, you select “Buy Now Pay Later”. Example : Suppose the price of the mobile is ₹16,000. Instead of giving it in one time, you can give it in installments of ₹4,000 for 4 months. 

• Quick approval

The BNPL service provider (like Lazy Pay, Zest Money, Amazon Pay Later etc.) will ask for some important details like : Name, Mobile no., Adhar or Pan Card, Bank A/c or UPI I’d. (After checking these, in most cases, approval is instant.)

• You get the product

After your BNPL request is approved, your order is confirmed. The product is sent to you just like a normal order. Even though you haven’t paid the full amount, you will still get the product immediately no need to wait.

• Pay in easy installments

you pay the amount in small installments every month or every week as per your chosen schedule. The money gets automatically deducted from your bank account. Example: A total of ₹16,000 will be paid in 4 months by deducting ₹4,000 every month. 

• Pay on Time

This is very important. If you miss a payment or delay, you may have to Pay extra charges or late fees, gate a bad credit score and Lose the option to use BNPL again.

Benefits of BNPL :

• You don’t have to pay the entire amount at once.
• You get instant approval.
• Interest-free installments (if paid on time).
• It is easy to buy expensive things.

Eligibility Criteria for BNPL

The eligibility criteria you will have to fulfil to avail Buy Now Pay Later facility are :

1. You must be a resident of India.
2. Must be at least 18 years old But, some providers may require 21 years and above.
3. Income source : 

• Should have a stable source of income.
• Either salaried or self-employed.
• Some providers may ask for minimum monthly
• Income (e.g., ₹10,000 – ₹20,000)

IV.  Valid Documents:

• PAN Card
• Aadhaar Card linked with mobile number
• Sometimes bank account details for e-mandate setup

V.  Digital KYC is mandatory (Aadhaar OTP-based or video KYC). 

VI. Must be have active mobile number and email ID for verification and communication.

Future of BNPL :

The future of BNPL in India and globally looks promising, but it also comes with challenges and changes.

• Growing Popularity Among Youth : Young people like BNPL because it’s easy, fast, and doesn’t need a credit card. Apps like Lazy Pay, Zest Money, Amazon Pay Later are getting more users every month. 
• More Tie-ups with Online & Offline Stores : BNPL will soon be accepted at more offline shops not just online. You might be able to use BNPL at local shops, petrol pumps, hospitals, etc. 
• RBI Rules Will Get Stricter : RBI is keeping a close eye to protect customers from over borrowing. In the future, there will be stronger KYC, credit limits, and transparent fees. 
• BNPL as an Alternative to Credit Card : BNPL is becoming a smart and easy alternative to credit cards. With features like 0% interest, auto-repay, and no hidden charges, BNPL will compete strongly with cards. 
• Better Technology and Use of AI : BNPL apps will use AI to check whether you can repay before seeing a limit. (This makes lending safer and reduces fraud.)

NOTE: BNPL is the future of easy and short-term borrowing in India. If people use it wisely and companies follow the right rules, it will help millions manage their money better especially those who don’t have a credit card or loan option.

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