Things to Keep in Mind Before Taking a BNPL Deal from a Social Lender

A Buy Now Pay Later Loan (BNPL) deal allows you to shop at leading online merchants without making upfront payments. You can take such a deal on a fintech company's app on your Android or iOS device and repay it in easy EMIs. Each Pay Later deal is suited for use at a specific merchant. Before taking a BNPL deal, here are a few things to keep in mind.

Check the Benefits Offered

Choose a fintech company that allows you to apply for Pay Later deals to shop at Amazon, Flipkart, Myntra, Big Basket, Big Bazaar and other important online merchants. See whether you can borrow as little as ₹1,000 and as high as ₹60,000 based on your shopping requirements. Look for flexible tenures like 90 days for a deal of ₹3,000-₹60,000 and 180 days for a deal of ₹6,000-₹60,000. Keep your repayment capacity in mind to choose a suitable tenure. Check whether the lender charges minimal to zero interest and low processing fees. You can make the most of a Buy Now Pay Later facility with these benefits.

See How the Facility Works

It is important to know how a BNPL deal works before you apply for one. You can find all the necessary information on the lender's app. Say, you want to apply for an Amazon Pay Later Loan. Once approved, the amount will be credited to your Amazon Pay balance directly via gift cards. You can use the borrowed amount from your Amazon Pay account itself. Knowing this information can help you use the deal suitably. 

Learn How to Boost Your Eligibility for the Deal

If you apply for the deal from a top fintech company, your creditworthiness would be assessed by an advanced credit rating system called Social Loan Quotient (SLQ). The SLQ score works like a traditional credit score. However, it is evaluated using artificial intelligence, big data analytics and machine learning. Plus, the score is based on modern factors like your smartphone metadata and social media footprint along with the credit score besides KYC details, education, salary and career experience. 

So, try to increase your eligibility for a Buy Now Pay Later deal by:

• Avoiding unfavourable social media practices like stalking other profiles or leaving inappropriate comments
• Mentioning all your educational qualifications
• Declaring your true monthly salary
• Being KYC compliant and providing correct KYC details

If you already practice these things, you will increase the chances of getting a BNPL deal. 

Conclusion 

Simply keep in mind the following things before applying for a Buy Now Pay Later deal. After the deal is sanctioned, ensure to pay all the EMIs regularly over the chosen tenure.