Buy Now Pay Later with Insta EMI Card: Payment Solution for You

With BNPL pay all your bills, travel, and shopping expenses in small instalments with flexible tenure.
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Buy Now Pay Later with Insta EMI Card: Payment Solution for You
4 mins
10th Nov 2023

What is ‘Buy Now Pay Later’ (BNPL)

The concept of "Buy Now, Pay Later" (BNPL) has emerged as a contemporary and consumer-friendly approach to retail transactions, providing individuals with a flexible alternative to traditional payment methods. In essence, BNPL allows consumers to make immediate purchases while deferring the payment to a later date. This modern payment model is designed to accommodate diverse financial preferences and circumstances.

When utilising a Buy Now, Pay Later system, consumers can acquire goods or services without the need for an upfront, one-time payment. Instead, the total cost is divided into manageable instalments, often spread over several weeks or months. This flexibility to ‘buy now, pay later’ appeals to individuals who may prefer a more gradual and budget-friendly approach to settling their bills.


The beauty of BNPL lies in its ability to cater to immediate needs and desires without imposing financial strain. It is particularly beneficial for those facing temporary budget constraints or seeking greater control over their cash flow. As the retail landscape continues to evolve, the Buy Now, Pay Later concept exemplifies a consumer-centric paradigm shift, offering convenience, accessibility, and a personalised payment experience in the ever-evolving world of commerce.

Let us understand BNPL’s meaning, and explore how BNPL works, its advantages and disadvantages, current trends, and how it influences your credit score.

How does BNPL work?

In India, ‘Buy Now, Pay Later’ existed as the ‘Udhar Khata’ system for decades, and still does in many cities. The ‘kirana’ or local stores maintain manually logged credit ledgers to let customers purchase items on credit and repay them later.

There may be times when you are running low on cash, but the expenses start to pile up. Or you may want to buy the latest smartphone but do not have enough funds in your bank account. In such situations, BNPL can help you fund your purchase. With BNPL, you get instant credit, which you can use to buy groceries, household items, purchase medicines, or buy your desired products. So how does BNPL financing work?

Features of pay later options

Essentially, BNPL providers offer you the option to repay in equal monthly instalments over a specified period. Furthermore, this ‘shop now, pay later’ scheme typically lets you pay in interest-free instalments.

For example, Bajaj Finserv offers the Insta EMI Card – a sophisticated take on the ‘pay later’ concept. Using this digital card, you can buy items on No Cost EMI, and repay the amount in interest-free instalments spread over many months.

However, if you fail to make the payment within the timeframe, the lender may charge interest on the outstanding amount. Any further delay can significantly impact your credit score.

Check features and benefits of Insta EMI Card

How to avail of ‘Buy Now Pay Later’ on EMI?

Here is how you can purchase items through BNPL on EMI using the Insta EMI Card.

  • Step 1: Visit any of the leading e-commerce platforms.
  • Step 2: Select the product you wish to purchase and click ‘Buy Now’.
  • Step 3: Choose the ‘Buy Now Pay Later’ option and select the Bajaj Finserv Insta EMI Card.
  • Step 4: Provide the details of your Bajaj Finserv Insta EMI Card and select your preferred No Cost EMI plan.
  • Step 5: Enter the OTP to confirm the purchase.

You can buy your favourite premium laptop or the latest gaming console in just four simple steps. If you think this sounds too good to be true, you still have not heard about the benefits offered by BNPL.

Benefits of BNPL

BNPL payments offer several advantages. Some of them include the following.

  • Convenience: BNPL allows you to purchase items without paying the entire cost upfront. This makes it affordable to buy high-end items, even when you are on a tight budget.
  • No interest or fees: Most BNPL service providers offer interest-free payments. This means you can spread the cost of the purchase without incurring additional interest charges.
  • Flexibility: You can choose a repayment period that is convenient for you, as most companies offer tenures ranging from a few weeks to several months.
  • Easy to use: BNPL payments are secure, simple, and transparent, and most companies facilitate a seamless checkout process. You will not have to fill out lengthy forms or provide much information.

Eligibility criteria and documents required

To avail of the Buy Now Pay Later facility, you must meet certain eligibility requirements. For example, if you want to apply for the Bajaj Finserv Insta EMI Card, the eligibility criteria include:

  • You must be an Indian citizen.
  • You must be between 21 and 65 years old.
  • You must be gainfully employed with a regular income source and show relevant documents.
  • You must have a good credit score (720 or above).

You must also provide KYC documents and a signed ECS mandate to access BNPL financing via the Bajaj Finserv Insta EMI Card.

Check documents required for Insta EMI Card

How ‘Buy Now, Pay Later‘ (BNPL) affects your credit score

Buy Now, Pay Later (BNPL) services can have both positive and negative impacts on your credit score. When used responsibly, BNPL may not directly affect your credit score since most providers do not report payment activity to credit bureaus. However, missed or late payments can damage your credit score and incur late fees. Additionally, some lenders may conduct a hard inquiry on your credit report when you apply for BNPL, which can temporarily lower your score. On the flip side, successfully managing BNPL can demonstrate responsible credit behaviour and potentially improve your credit score over time. It is crucial to understand the terms and conditions of BNPL agreements and ensure timely payments to mitigate any negative effects on your credit score.

Future of BNPL financing and trends

The rise of partnerships between financial institutions and retailers is the trend which has led to Buy Now Pay Later as one of the popular payment options. A few companies also offer exclusive deals and discounts to consumers using BNPL payments. This has contributed to the growing popularity and penetration of BNPL, making it more accessible to customers.

BNPL service providers are now expanding into new markets, offering new products and services. For instance, Bajaj Finserv Insta EMI Card offers Buy Now Pay Later option for travel and let you spread the cost of your holiday over several months. You can also use the ‘Buy Now, Pay Later’ facility for healthcare expenses, and easily pay for medical treatments and procedures.

The ‘Buy Now, Pay Later’ plans extend several benefits, making expensive items accessible and affordable. Bajaj Finserv is one of India's top BNPL service providers, making it easy to own high-end items using the Bajaj Finserv Insta EMI Card. With a simple application process, easy-to-meet eligibility requirements and attractive No Cost EMI plans, this digital card makes high-value purchases pocket-friendly.

Pros and cons of ‘Buy Now, Pay Later‘ (BNPL)

Buy Now, Pay Later (BNPL) services offer convenience and flexibility in making purchases, but they come with their own set of advantages and drawbacks. Understanding the pros and cons of BNPL is essential for making informed financial decisions and managing your spending effectively. Here is a detailed comparison of the Pros and Cons of BNPL:

Pros

Cons

Manageable payments

Risk of overspending

0% interest (often)

Late fees

No credit check (usually)

Doesn't build credit

Widespread availability

Potential debt trap

Convenience

Limited purchase protection

Budgeting tool (if used responsibly)

Temptation to impulse buy

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What merchant categories can the EMI Card be used for?

You can use the Insta EMI Card to shop from merchants across various other 1.5 lakh+ online and offline partner stores like

What does BNPL mean?

Buy Now, Pay Later (BNPL) is a modern payment model that allows consumers to make immediate purchases without the need for an upfront payment. Instead, the total cost is divided into manageable instalments, providing flexibility in settling the amount over a specified period, typically ranging from weeks to months. This concept has gained popularity as an alternative to traditional payment methods, offering consumers greater financial flexibility.

Is 'Buy Now, Pay Later' a good idea?

Whether BNPL is a good idea depends on individual financial circumstances and responsible usage. For those with a disciplined approach to budgeting, BNPL can offer convenience and flexibility. However, it requires careful consideration to avoid accumulating unnecessary debt. Users should be mindful of interest rates and fees associated with late payments. Responsible utilization of BNPL can be a beneficial tool for managing expenses, especially for those seeking short-term financial relief.

Why is BNPL growing?

BNPL is experiencing rapid growth due to its appeal to modern consumers seeking flexibility in their payment options. The model resonates with younger generations who may prefer installment-based payments over traditional credit cards. The seamless and user-friendly online experience offered by BNPL services has contributed to its popularity, especially in the e-commerce sector. Additionally, the absence of stringent credit checks makes BNPL accessible to a broader audience, fostering its widespread adoption.

Will BNPL replace Credit Cards?

While BNPL is gaining prominence, it is unlikely to entirely replace credit cards. Both payment methods serve different purposes and cater to diverse consumer needs. Credit cards offer a more comprehensive range of financial services, including credit-building opportunities and rewards programs. BNPL, on the other hand, is favoured for its simplicity and transparency, particularly among those who prefer installment-based payments. The coexistence of these payment options in the market suggests that they cater to distinct preferences, and the choice between them depends on individual financial goals and habits.

Is buying now paying later an instalment loan?

Buy Now, Pay Later (BNPL) is not typically structured as an instalment loan. Instead, it allows consumers to make purchases immediately and defer payment to a later date, often without interest if paid within a specified period. Unlike traditional instalment loans, BNPL services usually do not involve a fixed repayment schedule or interest charges. However, late payments may incur fees, and failure to repay on time could impact credit scores.

Where can I use the buy now pay later option?

The Buy Now, Pay Later option is widely available across various retail sectors, including online and offline stores. Many e-commerce platforms, fashion retailers, electronics stores, and even brick-and-mortar shops offer BNPL services to their customers. Additionally, some BNPL providers offer their services through mobile apps or websites, allowing users to make purchases from a wide range of merchants and enjoy the flexibility of deferred payments. However, it is essential to check with individual retailers or BNPL providers to ensure that the option is available for specific purchases.

What is an example of a BNPL?

An example of a BNPL service in India is ZestMoney, which allows consumers to make purchases and pay for them in instalments over a period, often with no interest if paid on time.

What payment platform is BNPL?

BNPL is a type of financial service that can be integrated into various payment platforms like Paytm, Amazon Pay, or directly at the point of sale through providers like Simpl and ZestMoney

Is buying now paying later an instalment loan?

Yes, BNPL is a form of instalment loan where the total purchase amount is divided into smaller, manageable payments over a set period, typically without interest if paid on schedule.

Where can I use the buy now pay later option?

BNPL options can be used at various online and offline retailers, including e-commerce websites like Amazon and Flipkart, as well as physical stores that partner with BNPL providers.

How can I avail of BNPL in India?

To avail of BNPL in India, sign up with a BNPL service provider like LazyPay or ZestMoney, complete the KYC process, and use their payment option at checkout on partnering e-commerce platforms or retail stores.

What credit score is needed for Buy Now, Pay Later?

BNPL services often do not require a high credit score. They may have more lenient credit checks compared to traditional loans, making them accessible to individuals with low or no credit history.

What are the reasons to opt for Buy Now Pay Later?

BNPL is convenient for managing large purchases by spreading the cost over time, often with no interest. It is also useful for those without access to credit cards or traditional loans, enabling immediate purchase power.

Do you pay interest on Buy Now, Pay Later transactions?

Interest on BNPL transactions depends on the provider and terms. Many BNPL plans offer interest-free periods if payments are made on time, but missing payments can result in fees or interest charges.

What happens if I don't pay BNPL?

Failure to pay BNPL instalments can lead to late fees, interest charges, and a negative impact on your credit score. Continuous default may result in collections actions and difficulty accessing future credit.

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