A Buy Now Pay Later (BNPL) deal helps you shop at leading online merchant sites like Amazon, Flipkart, Myntra and more without any upfront payments. After downloading it from Google Play Store or App Store, you can simply borrow a BNPL deal on a fintech company’s app. After using it to shop for your desired items across various categories, you can repay the Buy Now Pay Later deal in EMIs.
The two primary mistakes to avoid are choosing an amount and tenure randomly without a thought. Top fintech companies offer BNPL deals ranging from ₹1,000 to ₹60,000. You need to select a suitable amount based on your shopping requirements. A simple way is to add the required items to the cart of an online store and check the total amount payable. Then apply for the bnpl amount that covers this amount.
Likewise, choose the tenure carefully. You’re usually allowed to pay off a Buy Now Pay Later deal in EMIs in 90 or 180 days with zero or minimal interest charges. Assess your repayment capacity and consider the interest charges to pick a suitable tenure.
Here are three other mistakes to avoid when signing up for a BNPL deal.
Entering Incorrect Details
To apply for a BNPL deal, you need to create your profile on the bnpl app by entering the required details. These include your name, phone number, email ID, date of birth, city, pin code, educational qualification, etc. Ensure to provide correct details so that the lender can regard you as a borrower without fraudulent motives.
Not Submitting Genuine Documents
When you apply for a Buy Now Pay Later deal, you need not provide too many documents. Plus, you can simply upload them online on the lender’s app without any hassle of paperwork. All you need to do is to ensure providing genuine documents. These may include your selfie, identity proof, address proof, and other documents. The lender will understand that you’re KYC compliant if they’re authentic. This will favour a seamless verification of the documents to improve your chances of qualifying for the deal.
Not Learning How the Deal Works
It’s important to read how a BNPL deal works by reading the given information on the bnpl app. It would help if you learned this to know from where you can redeem the amount. Only then you can use it successfully for shopping at the chosen merchant site.
Conclusion Apart from these, don’t forget to check the modes by which you can repay the borrowed amount. Usually, repaying a Buy Now Pay Later deal in EMIs is allowed via bank account debits or IMPS/NEFT transfers.