Buy Now, Pay Later (BNPL) has become India’s hottest payment trend — from Flipkart to Swiggy, shoppers are splitting bills across months. Sounds convenient, right?
But what if BNPL is silently wrecking your financial discipline and credit health?
Let’s dive into the truth behind the “Pay Later” promise.
🧾 1. What is BNPL — and Why It’s Trending?
BNPL lets users split payments into small EMIs or delay the full bill by 15–30 days.
It feels effortless — no paperwork, no cards, no interest (or so they say).
BNPL Players in India:
LazyPay
ZestMoney
Simpl
Amazon Pay Later
Flipkart Pay Later
Ola Postpaid
🧠 Why it's booming:
👉 Quick approval
👉 No credit history required
👉 Instant gratification (shop now, worry later)
💣 2. Hidden Pitfalls of BNPL You Didn’t See Coming
a. False Sense of Affordability
You’re more likely to overspend when the pain of payment is delayed.
b. Late Fees = Silent Killers
Miss one due date and you could be charged ₹300–₹500 per item — that’s more than credit card penalties in many cases.
c. No Credit Card? Still Affects Credit Score
BNPL defaults are reported to bureaus like CIBIL. One late EMI? Your creditworthiness drops.
d. Multiple BNPL = Debt Trap
Using 3–4 BNPL apps? You’re basically juggling untracked micro-loans. That’s risky.
📊 BNPL Trap in Action – A Real Breakdown
| Purchase | Price | EMI (3 months) | Late Fee (if missed) |
|---|---|---|---|
| Earphones | ₹2,400 | ₹800/month | ₹400 |
| Food Delivery | ₹1,200 | ₹400/month | ₹350 |
| Shoes | ₹3,000 | ₹1,000/month | ₹500 |
Total Spend: ₹6,600
Hidden Late Fees (if missed): ₹1,250 😰
Total Debt Owed: ₹7,850
🧠 Vizzve Tip:
Always treat BNPL like a short-term loan. If it’s not in your budget, skip it.
Consider regulated personal loans or EMI options from trusted NBFCs like Vizzve for better transparency and control.
🛑 3. When BNPL Becomes a Credit Score Nightmare
Your repayment behavior on BNPL apps is now reportable to CIBIL.
One missed ₹400 EMI can cost you 50–100 points on your credit score.
This can block your chances of getting a home loan, car loan, or even a job in future.
✅ 4. How to Use BNPL Responsibly (If You Must)
✔️ Don’t use more than one BNPL provider
✔️ Track repayment dates like a hawk
✔️ Never use BNPL for groceries, food, or fuel
✔️ Use it only for one-time essentials you’ve budgeted for
✔️ Consider Vizzve’s pre-planned personal loans with clear timelines and support
Swipe smart, not blindly.
Choose Vizzve for transparent finance solutions that won’t surprise you later.
💡 Plan your next loan with confidence — the Vizzve way.
❓ FAQs
Q1. Is BNPL really interest-free?
Only if you repay on time. Most apps charge hefty late penalties and hidden fees.
Q2. Can BNPL ruin my credit score?
Yes. Missed BNPL payments are reported to credit bureaus like CIBIL and Experian.
Q3. Is there a safer alternative to BNPL?
Yes. Opt for low-interest personal loans or EMI plans through regulated NBFCs like Vizzve.
Published on :July 29th
Published by : Kaushik
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed