In 2025, financial flexibility is just a click away. But the real question is:
Should you go for a Personal Loan or use BNPL (Buy Now, Pay Later) services?
Both help you buy now and pay later — but the impact on your finances, credit score, and long-term debt can be drastically different.
Let Vizzve Finance break it down.
What Is BNPL (Buy Now, Pay Later)?
BNPL lets you:
Split your purchase into easy installments
Pay 0% interest (for short-term durations)
Get approved instantly, often with no credit check
Popular with online shopping, electronics, fashion, and travel platforms.
What Is a Personal Loan?
A personal loan is:
A lump sum given by banks/NBFCs for any personal expense
Paid back over 1–5 years, usually with interest
Based on your credit profile and income
Often used for medical emergencies, weddings, education, or debt consolidation.
BNPL vs Personal Loan – Quick Comparison Table
| Feature | BNPL | Personal Loan |
|---|---|---|
| Approval Speed | Instant (often no credit check) | Quick, but credit check required |
| Credit Limit | Small (₹5,000–₹1 lakh) | Higher (₹50,000 to ₹25+ lakh) |
| Interest Rate | 0% for short terms; high late fees | 10%–24% p.a. |
| Tenure | Short (1–6 months) | Long (1–5 years) |
| Credit Score Impact | Limited reporting | Strong credit history building |
| Use Case | Small purchases | Big-ticket expenses |
When to Choose BNPL
✅ Small-ticket online purchases
✅ If you can repay in a month or two
✅ For offers with 0% interest
❌ Avoid if you tend to miss payments — late fees are brutal
❌ Not ideal if you’re building credit history
When to Choose a Personal Loan
✅ For major planned expenses (wedding, home renovation, education)
✅ If you want to build or improve your credit score
✅ When you need larger loan amounts with flexible repayment
✅ Transparent terms from regulated lenders like Vizzve partners
Vizzve Finance Tip
“BNPL is like a soft drink — quick and tempting. Personal loans are like a full meal — structured, long-term, and substantial. Choose based on your hunger.”
FAQs
Q1. Can I take both BNPL and a personal loan at the same time?
Yes, but be mindful of your credit and repayment capacity.
Q2. Does BNPL affect my credit score?
Some BNPL platforms report to credit bureaus, but not all. Personal loans almost always do.
Q3. Is BNPL safer than a personal loan?
It depends. BNPL is easier but has stricter penalties for default. Personal loans are more structured and regulated.
Published on : 22nd July
Published by : SMITA
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