Loans & EMI Guide #90: Personal Loan vs Buy Now Pay Later (BNPL) — What’s Safer?

 

BNPL Looks Cool — But is It Safer Than a Personal Loan? Let’s Compare

“Buy Now Pay Later” is the new trend — but how does it compare to personal loans? Which is cheaper, safer, and better for your credit?

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🧾 What is BNPL?

BNPL lets you split a purchase (mobile, clothes, course, etc.) into 3–6 interest-free EMIs. Offered by:

• ZestMoney
• LazyPay
• Amazon Pay Later
• Flipkart Pay Later

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📉 Risks of BNPL

• Easy to overspend
• Missing payment = high penalty
• Reported to CIBIL
• Not regulated like banks

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🏦 Personal Loan Pros

• Lower interest (10–18%)
• Fixed tenure
• Higher amount available
• Improves credit mix (if paid on time)

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📊 Comparison Table

Feature	BNPL	Personal Loan
Instant Access	✅ Yes	❌ 1–2 days
Max Amount	₹10K–₹60K	₹20K–₹20L+
CIBIL Impact	⚠️ Risk if late	✅ If paid properly
Repayment Tenure	Short (1–3 months)	Flexible (6–60 months)

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✅ Conclusion

BNPL is good only if you’re ultra-disciplined. But for larger, planned expenses — personal loans are safer, smarter, and more reliable.

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