Be frank, have you ever taken a loan and paid no interest on the borrowed amount for a month? Isn’t it a treat to your financial planning?
Sadly, you might not have experienced the same because banks and financial institutions charge interest on the amount borrowed by the user. Apart from that, the delay in returning the borrowed EMI amount impacts the credit score and credit score then impacts one’s creditworthiness. Besides, a credit card is also a costly affair. Banks charge high interest on credit card usage. All in all, it is a vicious cycle no one would ever want to enter.
But what, if we say that there is still a loan provider who does not charge interest on the borrowed loan amount?
That’s true, Paytm along with its partners, Clix and ABFL have introduced a feature called ‘Buy Now, Pay Later’ to let users purchase goods now & pay later. Paytm along with Clix does not charge interest on the credit amount for a month (30 days). The feature is available on the Paytm application and an amount upto Rs. 60,000 can be provided to the user as credit instantly.
If this makes you curious to know more about Paytm’s Buy Now, Pay Later, then, let us elaborate more about Paytm’s ‘Shop Now, Pay Later’ or ‘Buy Now, Pay Later’.
What is Paytm ‘Buy Now, Pay Later’ feature?
Paytm ‘Buy Now, Pay Later’ is also known by the terms BNPL, Paytm Now, Pay Later, Shop Now, Pay Later. It is a feature that allows users to buy things, pay bills, book tickets and more from the borrowed amount online and from the shops. This borrowed amount then is required to be paid by the user during a stipulated period.
- The Buy Now, Pay Later feature can be used to pay expenses of ‘Groceries, Fuel, Mobile & DTH Recharge, Bill Payments, Flight Tickets’ and more
- Buy Now, Pay Later feature offers interest-free loans through the Paytm NBFC partners
- Users are given the flexibility to convert the borrowed amount into EMIs of up to 6 months
- Can be used online/offline for INR denominated purchases only from the selected merchant websites or outlets
- Rs. 500 to Rs. 60,0000 can be borrowed while using the feature Buy Now, Pay Later
- There is no activation fee charged by Paytm
- Buy Now, Pay Later or BNPL feature helps in building a good credit score
- The borrowed amount paid after the stipulated time period will attract a penalty as interest from the user
How to Activate Paytm Buy Now, Pay Later or Shop Now, Pay Later?
Following are the few steps are required to activate Buy Now, Pay Later/BNPL/ Shop Now, Pay Later-
- Login to the Paytm application and enter your passcode or use the fingerprint sensor
- Click on the menu bar given on the right-left corner of the app screen
- Click on ‘Paytm Postpaid’ and next on ‘Proceed’
- Enter the required information like PAN name, contact details, DOB, registered bank, etc
- Enter the registered mobile number to receive the OTP
- Upon entering the OTP, the Buy Now, Pay Later feature will either be activated instantly or be put a user request on the waiting list
Advantages of Buy Now, Pay Later feature
Listed below are the top advantages of the Buy Now, Pay Later feature–
- Users can avail credit to the amount of Rs. 60,000
- No interest is charged for 30 days
- Users are given the flexibility to convert the borrowed amount into 12 easy monthly instalments
- The borrowed amount can be used to buy groceries, pay bills, recharge mobile phones and more
- No lengthy documentation is required to activate the feature called Buy Now, Pay Later
- No hidden charges are charged by the Paytm
What is the hype about the Buy Now, Pay Later feature?
There is nothing more convenient than having a digital platform called Paytm that offers instant credit within minutes to its users. This not only makes the purchase easy & instant but a little less heavy on the pocket as the part of the credit can be paid every month for a particular time.
- Buy Now, Pay Later is a feature that makes it easy for users to get an instant credit amount
- The process to activate Buy Now, Pay Later is all digital & safe
- BNPL offers low-cost financing options to the users along with a flexible repayment tenure
- Buy Now, Pay Later or Shop Now, Pay Later can be activated by following a few easy steps only
Who can use the Buy Now, Pay Later Feature?
Following is the eligibility criteria that need to be first fulfilled by the user before activating or availing the Buy Now, Pay Later feature-
- The user should be a resident of India
- He/she should have a valid PAN
- He/she should be 21 years of age
- The person who would like to use Buy Now, Pay Later feature should have a regular source of income
*Lenders who provide the Buy Now, Pay Later feature to the particular retailers can add the desired general guidelines and eligibility criteria accordingly
BNPL or Credit Cards- Which is Better?
BNPL, though, is not a new concept. There are several banks and financial institutions available that offer this feature to the users. But, the difference that Paytm makes from other financial institutions is that Paytm does not charge interest on the borrowed amount for a month. Apart from that, Paytm’s BNPL feature is way better than credit cards too. The following reasons prove the same-
|Parameters||Credit Cards||BNPL or Buy Now, Pay Later|
|Credit history||Required to create a good credit report||Not required|
|Credit approval||Takes time||Instant|
|EMI||Required to pay the minimum due amount in a month||Fixed EMI has to be paid within the set time period|
|Onboarding||Strict||A little easier|
|Paperwork||A lot of paperwork required||No or minimal paperwork required|
|Hidden charges||May be levied||Transparent and low/no-cost pricing model|
|Interest rate||Higher||Comparatively lower|
|Credit amount||Higher/Desired credit limit||Up to Rs 60,000 only|
|End to end journey||Takes multiple days to use the amount||Users can start using the limit within 1 minute|
Paytm Postpaid- Terms & Conditions
Popularly known as Buy Now, Pay Later/Shop Now, Pay Later, Paytm postpaid is a feature that makes it flexible for users to make purchases today and pay after some time. However, it is highly advisable to go through the terms and conditions before borrowing the credit amount to make the afterwards process simpler.
|Feature||Paytm Postpaid feature|
|Purpose||Can be used online/offline INR denominated purchases from selected merchant websites or outlets|
Such selected merchant websites or outlets should be made to receive payments from the Paytm platform
|Cash withdrawal||Not allowed|
|Late payment fee|
Upto Rs. 100- Rs. 0
Rs. 101 to Rs. 250- Rs. 10
Rs. 251 to Rs. 500-Rs. 25
Rs. 501 to Rs. 1000-Rs. 50
Rs. 1001 to Rs. 2000-Rs. 100
Rs. 2001 to Rs. 5000-Rs. 250
Rs. 5001 and above-Rs. 500
* Late fees are inclusive of all taxes
|Account statement||Paytm Postpaid users will be charged on a monthly basis for the purchases made; however, no statement will be generated for the period in which no transactions are made|
The account statement will be available on the Paytm platform
It will be generated from the 1st of every month for the transactions made during the preceding month
It will be shared on the email too
|Outstanding amount||Outstanding amount has to be paid on the due date|
Late fees will be charged if the outstanding amount is not paid before the due date
|Due date||7th of each calendar month or Clix may inform in the statement from time to time|
Paytm Postpaid users might request Clix to extend the due date by one month
|Billing period||1st day till last day of a calendar month|
|Bill generation date||1st day after the Billing Period|
|Mode of payment||Clix allows-Debit/credit cards|
Standing instructions on linked bank accounts
“Get a complete overview of the Paytm Postpaid terms & conditions “
BNPL/Buy Now, Pay Later or Shop Now, Pay later is a feature that has made lakhs of users complete their transactions on credit. Also, the borrowed amount does not attract any interest for a particular period. Besides, the borrowed amount can simply be broken into monthly EMIs. If you would like to buy those items added to your cart now, try Paytm’s Buy Now, Pay Later feature today!