Indeed there has been a significant advancement in technology, and thus has affected virtually almost all other aspects positively. With increased businesses, there has been an increased need for loans across the country, especially by business owners and individuals.
Among the numerous types of loans available, we will discuss the buy now, pay later loan. In this article, we will discuss how to apply for this loan, what the loan is all about, and most significantly, we will answer some of the frequently asked questions people who try to obtain this loan have to ask. Stay tuned.
Overview Of Buy Now Pay Later Loan
This is a unique type of loan, exceptional because it allows buyers to delay payment for a product they can take home immediately. This means you can purchase whatever you want, take it home, and use it while you pay for it later.
This type of loan sounds too good to be accurate, but it is true. They made it so that it will be easy and convenient for you to pay back the loan within a short period.
Furthermore, this buy now and pay later loan is mainly used by retailers who allow buyers to purchase and pay later. For instance, a fashion retailer can give buyers a new pair of jeans, dresses, shoes, or other items they want. Instead of waiting till they can afford it, they can buy it and pay later, at their convenience.
However, this loan is a short-term loan, meaning that you need to pay for what you bought within a short period, and it is usually deducted from your salary in a way that will be convenient for you.
How To Get Buy Now and Pay Later Loans
Getting a short-term loan under the buy and pay later scheme is mainly dependent on the person, organization, or board that is granting such a loan and the type of business they deal in.
Irrespective of the lender’s mode of operation, as with any other loan platform, there are some basic requirements you must meet before you are granted access to this loan, and some of them are;
- Applying for a loan under this loan scheme will require the borrower to identify the product they want to buy. This could be phones, electronic accessories, clothes, etc.
- After the borrower must have picked out all his product of choice, they will be required to fill out an application form for the loan amount, and the loan amount is usually equivalent to the value of the item they have selected.
- The lender will, after some background checks and accessing the borrower, or when satisfied, will present the loan agreement to the borrower.
- If the conditions of the loan are suitable to the borrower, they will sign on it and then get their product to be making payments in installments until the loan amount is completely paid off. Make sure that the terms of the agreement are flexible enough for you.
- However, certain conditions need to be met depending on the lender, as mentioned earlier. Some creditors would require a partial payment of the value of the product you want to buy. This is usually expressed as a percentage of the value of the product.
- While other loan companies in Nigeria restrict their lending services only to salaried employees to ensure prompt repayments, the reason for this is to enable them to deduct some specific amount of money from the borrower’s monthly salary to help them to pay for the product faster and easier. This is why you must understand the terms and conditions of the lender before opting for a loan under this scheme.
From here, we have seen that this loan is the type that is easy to go for. You do not need elaborate details or to present complicated documents before your loan is granted. It’s something you can apply for and get immediately, note that the loan is strictly for buying products and paying later.
Advantages Of Buy Now And Pay Later Loan
There are numerous advantages of buy now and pay later loan, and some of them are;
- You will not be required to pay additional interest if you repay the loan within the agreed period.
- The advantage of buying all the items you desire without having to leave one because of lack of money to pay completely on the spot lowers and removes buying hesitation for buyers.
- It increases the average order value for retailers since more buyers get to place purchase orders.
- It leads to an overall increase in sales.
- Generates a new stream of income through loan interest.
Frequently Asked Questions
There are so many frequently asked questions people have on this topic, and we will answer some of them. If your question is not answered here, you can request it in the comment section. Some of the frequently asked questions are;
Is buy now, pay later a loan?
Most people do not know if buy now pay later is a loan. The answer is yes. There are numerous types of loans, and buy now pay later is one of them.
The buy now pay later loan is a type of installment loan it divides your purchases into multiple equal payments, sometimes, and you may be required to pay at least part of the cost before checking out. At some other times, you are allowed to go with it.
This depends on the company’s service policy, and the remaining payments are then billed to your debit or credit card until your purchase is paid in full.
What is the easiest buy now, pay later app to get approved for?
There are numerous apps to buy now and pay later, but the best we have picked out is an app called “Affirm.” This is mainly because it has no fees of any kind. There’s not even a late fee attached.
For transactions that require interest, affirm charges simple interest. This means that your interest charges will not compound and grow larger.
What is a BNPL lender?
This is an acronym that stands for Buy Now Pay Later Plan. This loan is offered to customers at the point of sale to enable them to purchase merchandise or product on credit without a credit card.
This enables buyers to buy whatever they want without paying altogether before checking out. There are so many types of buy now, pay later loans, and some of them include; Shopify, affirm, afterpay, sizzle, PayPal, and Klarna.
Can I borrow money with Afterpay?
Yes, you can borrow money with afterpay, but before you do so, there are things you need to know, which are; These loans are interest-free, with up to 25% payment upfront and 25% payments every two weeks until the loan is paid in full.
One of the numerous reasons why most people prefer an after-pay loan is because there are no fees attached as long as you make your payment on time. If you pay late, late payments are usually fixed, capped, and do not accumulate over time.
Buy now pay later is a loan that has saved a lot of people from emergencies. We believe that this article was of great help to you.
For questions you may have that were not answered in some of the frequently asked questions, feel free to use the comments section.