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How Buy Now And Pay Later Is Changing Online Shopping In India. 

Purchasing has grown in massive shifts by changing the face of shopping that operates online in India. People have moved to online purchasing for every little necessity, and it has been proven very beneficial, especially after the arrival of the pandemic. 

Microcredit has been a hugely popular solution that is easily usable and can be used to manage the occasional expenditures better. A small loan is provided to individuals with fewer earnings and motivates them to become self-employed. Microfinance has influenced the widespread use of services like Buy now pay later, credit cards, and even instant loans

Hence, E-commerce with Buy now pay later is widespread in popularity and flexibility. This payment model has proven to be the most chosen method for online payment. BNPL marks the collaboration of e-commerce with the consumer. Therefore this article will discuss how BNPL is successful in bringing changes in online shopping. 

WHAT IS BNPL (BUY NOW, PAY LATER)? 

BNPL is a mode of payment that supports consumers in purchasing products right now and pushing the payment for later. BNPL is similar to credit card, but the payment procedure is slightly different. This mode of payment is not only a hassle-free procedure for the consumers but also an easy way for retailers to move their products. 

HOW DOES BNPL WORK? 

The concept of BNPL is straightforward as the customers can skip the online payment procedure right at the moment. Instead of paying the entire amount at once, they can make the expenditure in installments over a duration. The procedure usually begins by allowing the consumers to go through a contract that requires them to make payment of both the principal amount and interest later, which is also similar to the procedure of EMI payments, 

Buy now pay later payment works precisely like credit card payments from a business perspective. But when it comes to credit score, as long as you are repaying the entire principal amount on time, the BNPL impact on your credit score should not be harmful. Furthermore, if you clear your amount on or within the stipulated time, your credit score can also improve. However, delaying payments and keeping dues can have negative consequences on credit scores. BNPLs impact on your credit score shouldn’t be dangerous if you have a good payment history.

INSTANT LOAN VS BUY NOW PAY LATER 

Instant loans and buy now pay later are products and provide varied services. Both the services offer instant loans to the consumers. In BNPL, the loan is provided based on the credit score and repayment history. However, borrowers can avail of loans upto 1 lakh. At the same time, the instant loan allows avail of upto INR 25 lakhs. 

Lenders of instant loans do extensive work on borrowers’ creditworthiness before any loan approval and disbursal. The amount is credited to the borrower’s account directly after sanctioning the loan. 

BNPL can be availed for lesser expenditure, and you can borrow an instant loan for colossal spending as the latter provides no EMI without interest. In contrast, an instant personal loan offers EMI upto 11% and above. 

BNPL recommends more restricted usage of the loan amount, but instant loans provide” no limit usage.” 

Hence, Buy now pay later can be a good choice. But if you want to borrow money for huge expenses and intend to repay it on time, they should go for an instant loan. 

ENDNOTE ‘Buy now pay later is a famous and commonly used finance purchasing solution and instant loans and credit cards. The payment method is very profitable for brands selling the products to younger masses. Such association and collaboration between the sellers and the consumers under flexible payment terms increase the growth of e-commerce and micro-credit finance.

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