Buy Now, Pay Later: A Closer Look at Instant Shopping Loans

Jun 4, 2024
 |  1 min read


The way people are shopping now has changed drastically than what it used to be earlier. Be it grocery shopping, electronics or clothing items, people prefer to purchase with the “buy now, pay later” option. This method of buying things has brought a revolution in online shopping.

But, what is the buy now, pay later way of shopping and how do instant shopping loans differ from traditional financing methods?

Let us learn in detail why buy now, pay later services gained popularity.

What is a Buy Now, Pay Later?

Buy Now, Pay Later or BNPL is a short-term loan for shopping that gives shoppers flexibility when buying the product/service without paying at the moment, usually in interest-free instalments. The buyer can pay the quick loans online after a stipulated time period.

A lot of financial institutions have started providing loan for shopping option. With the rising cost of living, BNPL loans are being used to swim through inflation.

How does Buy Now, Pay Later work?

If you are new to this system of purchasing, you might be wondering, how do Buy Now, Pay Later work. With BNPL, you can buy the item instantly without paying at the moment. You pay for it over some time in equal monthly instalments.

But, if you do not repay the amount within the given time, the lender can charge interest on the amount of the purchase. This can impact your credit score.

BNPL offer various benefits, particularly to certain groups of people. Wondering who benefits most from using buy now, pay later services? This service is for you if you have limited access to credit or are managing unexpected expenses. 

What are the Advantages and Disadvantages of  Buy Now, Pay Later?

Buy now pay later is undoubtedly an interesting way of shopping, but it has its positives and negetives. Let us learn about the advantages and disadvantages of this cash loan online.


  1. Breaking down payments: You can split your costs over several months that fits best with your pay schedule.
  1. 0% Interest: When you make your payments on time, you can escape from any kind of interest.
  1. No credit check: Several BNPL services do not check credit before approving.


  1. Fees and interest: If you miss a Buy Now, Pay Later (BNPL) payment, you will have to pay interest on the unpaid balance.
  1. Overdrafts: If not careful, automated scheduled payments may lead to bank account overdrafts.  
  1. Difficult returning process: Returning a purchase with BNPL involves a long and strenuous process.
  1. Overspending: Often, people, while making small payments with BNPL services, overlook the overall money they are spending.

How can you Responsibly use Buy Now Pay Later?

It is crucial to understand how to responsibly use the Buy Now Pay Later option if you do not want to go out of budget or hamper your credit score. Here are a few things to remember:

  • Check the eligibility conditions of the BNPL, such as credit score, age, income, and residency.
  • Take you time to have a thorough understanding of the BNPL repayment terms like the minimum payment amount, due date and the late payment charge.
  • Check your credit report frequently to keep track of your charges and ensure there is no error with the credit bureau.
  • Take advantage of the BNPL offers to avoid impulsive or unnecessary purchases.


Buy Now Pay Later is a type of cash loan online which is a flexible and easy method to make your purchases. You do not have to worry about paying a big amount right at the time. But, it is also important to use this way of shopping wisely. You need to prevent situations like going into debt or hampering your credit score.

Platforms like mPokket give excellent guidance on how to use the Buy Now Pay Later option wisely. They offer quick loans online for any purchases. With minimal documentation and faster loan approval, this platform has become a favourite among those who need quick cash loans online or loans for shopping.

Gaurav Jalan

Gaurav Jalan is the Founder and CEO of mPokket, a digital lending platform serving underserved Indian youth. He leverages technology and experience to deliver cost-effective credit to marginalized populations. In his role, he provides strategic direction and oversees execution to fulfill mPokket's mission.