- Convenience: BNPL apps are very convenient to use. You can simply download the app and create an account. Once your account is approved, you can start making purchases at partner merchants and pay for them later in installments.
- Affordability: BNPL loans are typically very affordable. Most BNPL apps offer no interest on purchases paid within a certain period of time, such as 30 or 45 days. Some apps also offer EMI conversion options, which allow you to spread the cost of a purchase over a longer period of time at a low interest rate.
- Flexibility: BNPL loans offer a lot of flexibility. You can choose which purchases you want to finance and how you want to pay for them. You can also make additional payments or pay off your balance early at any time.
- Build your credit score: By using BNPL apps and paying your bills on time, you can build a positive credit history and improve your credit score. This can help you get better loan offers in the future.
- No paperwork: BNPL apps typically do not require any paperwork. You can apply for a loan and get approved within minutes.
Best Buy Now Pay Later Apps in India
- Paytm Postpaid: Paytm Postpaid is one of the most popular BNPL apps in India. It offers users a credit limit of up to ₹100,000, which can be used to make purchases at over 5000 partner merchants. Paytm Postpaid also offers a variety of other features, such as bill splitting and easy repayment options.
- ZestMoney: ZestMoney is another popular BNPL app in India. It offers users a credit limit of up to ₹2 lakh, which can be used to make purchases at over 1.5 lakh partner merchants. ZestMoney also offers a variety of other features, such as EMI conversion and insurance benefits.
- Flipkart Pay Later: Flipkart Pay Later is a BNPL service offered by Flipkart. It allows users to make purchases on Flipkart and pay for them later in installments. Flipkart Pay Later offers a credit limit of up to ₹1 lakh and no interest on purchases paid within 30 days.
- Amazon Pay Later: Amazon Pay Later is a BNPL service offered by Amazon. It allows users to make purchases on Amazon and pay for them later in installments. Amazon Pay Later offers a credit limit of up to ₹10,000 and no interest on purchases paid within 30 days.
- Simpl: Simpl is a BNPL app that allows users to make purchases at partner merchants and pay for them later in installments. Simpl offers a credit limit of up to ₹20,000 and no interest on purchases paid within 30 days.
- LazyPay: LazyPay is a BNPL app that allows users to make purchases at partner merchants and pay for them later in installments. LazyPay offers a credit limit of up to ₹50,000 and no interest on purchases paid within 45 days.
| App Name | Credit Limit | Credit score requirement |
|---|---|---|
| PAYTM POSTPAID | Loan up to 60,000/- | 600+ |
| CASHe | Loan up to 60,000/- | 600+ |
| ZestMoney | Loan up to 2.5 Lakhs | doesn't require |
| Amazon | Loan up to 60,000/- | doesn't require |
| Lazypay (Credit Line + Personal Loan) | Loan up to 1 Lakhs | 750+ |
| MobiKwik | Loan up to 60,000/- | 750+ |
| Flipkart | Loan up to 1 Lakhs | 700+ |
| Simpl | Loan up to Rs. 25000 | doesn't require |
| postpe | Loan up to 10 Lakhs | 700+ |
What happens if a customer fails to pay BNPL?
- Charging late payment fees: Most BNPL providers charge late payment fees to customers who miss or make late payments.
- Reporting the missed or late payment to the credit bureaus: This can damage the customer’s credit score and make it more difficult for them to qualify for loans and credit cards in the future.
- Suspending or terminating the customer’s BNPL account: This will prevent the customer from using BNPL to finance future purchases.
- Taking legal action: In some cases, BNPL providers may take legal action against customers who fail to repay their loans. This could involve filing a lawsuit in court or sending the customer to collections.
FAQ RELATED BNPL APPS
Is Buy Now pay later bad for credit?
Buy now, pay later (BNPL) can be good or bad for your credit, depending on how you use it. If you use BNPL responsibly and make your payments on time, it can actually help you build your credit history. This is because BNPL providers typically report your payments to the credit bureaus, which can help improve your credit score over time.
What is the buy now pay later business model?
BNPL providers generate revenue from a variety of sources, including:
- Merchant fees: BNPL providers typically charge merchants a fee for each purchase that is financed using their platform. This fee is usually a percentage of the purchase price.
- Late payment fees: BNPL providers typically charge late fees to customers who miss or make late payments.
- Interest: Some BNPL providers charge interest on purchases that are not paid off within the interest-free period.
Does BNPL affect cibil score?
Yes, BNPL can affect your CIBIL score.
Is buy now, pay later legal?
Yes, buy now, pay later (BNPL) is legal in most countries, including India. However, there are some regulations that BNPL providers must comply with.
In India, the Reserve Bank of India (RBI) has issued guidelines for BNPL providers. These guidelines require BNPL providers to:
- Obtain a license from the RBI.
- Carry out proper affordability checks on customers before issuing them with BNPL loans.
- Disclose all fees and charges to customers upfront.
- Not engage in unfair or misleading practices.
What is the minimum credit score for buy now pay later?
The minimum credit score for buy now pay later (BNPL) varies depending on the BNPL provider. Some BNPL providers may accept consumers with low credit scores, while others may require a higher credit score.
What is the minimum credit score for buy now pay later?
The minimum credit score for buy now pay later (BNPL) varies depending on the BNPL provider. Some BNPL providers may accept consumers with low credit scores, while others may require a higher credit score.
