What is the Difference Between BNPL Vs Personal Loan Vs Credit Card?

INTRODUCTION  

It can get confusing when choosing between financial services like BNPL, instant personal loan and Credit Card. To get things sorted we narrowed down the comparison between.  


How to Take Personal Loan Through Personal Loan App


 

WHAT IS BNPL?

Buy now pay later (BNPL) is an option for payment in which you can purchase without having to pay immediately. It is a purchase done without spending it from your pocket. It is a service provided by a company that allows you to make the payment without you paying it at the current moment.  


Nonetheless, the lending company or the lender pays on your behalf, and later you will have to pay the whole amount at a time or you can also pay it in the no-cost EMI (Equated Monthly Installments). If you don't pay the amount within the given tenure, then the lending company will be responsible for charging you interest.  

Note- If you further delay your payment, it will affect your credit score. So, make sure you pay the amount on the due date. 


Advantages -   

  1. - Make the goods and services accessible without impacting the budget 

  1. - No cost EMI option  

  1. - Flexible tenure 

  1. - Instant access to funds 

  1. - Safe digital process 

 

WHAT IS A PERSONAL LOAN?

An urgent personal loan is a financial service or an amount borrowed that can be utilized for various purposes. For example, you can use it for debt consolidation, home renovation, or an exotic vacation. You can take personal loans from banks, credit unions, or digital lenders. The borrowed money must be paid including the interest.  


You can take even for a small loan amount or a huge amount. The loan amount is to be paid in the monthly EMI in the given tenure.  


Note - A personal loan is a quick disbursement facility if you opt for a registered NBFC like ZinCash personal loan app. 

 

Advantages of Personal loan -  

  1. - Higher boring capacity  

  1. - Collateral and non-collateral available. 

  1. - Fewer documents required  

 
 

WHAT IS A CREDIT CARD?

A credit card is a thin rectangular card considered plastic money; it is a payment card that is issued to the user known as a cardholder. It allows the cardholder to borrow funds to buy goods and services immediately and that can be paid later. The conditions applied - the borrower must pay back the money, pay the applied interest, additional charges. 

 

Advantages of Credit Card- 

  1. - You can buy things on credit 

  1. - Makes travel easy  

  1. - Discount and Cashback 

 
 

COMPARISON  

 

BNPL 

Personal loan  

Credit Card 

Eligibility criteria 

Indian Salaried person above 18 and under 55 from top 1 and 2 tier cities. 

KYC documents. 

India salaried and self-employed above 21 and under 59. 

KYC documents.  

Credit score. 

Indian salaried and self-employed age above 18.   

Credit history. 

Type  

Unsecure 

Unsecured as well as secured 

Unsecure 

Interest charged 

Interest-free loan 

Low to high  

High  

Credit available  

Upto 1lakh 

Upto 25lakh  

Different limit  

 
 

CONCLUSION:

  

While choosing you have to consider your option according to requirement, eligibility, and repayment capacity. You have to consciously note that if you are unable to pay back for any of the above options then you have to pay the penalty.  


If you need fewer funds or for a small ticket then you can choose between BNPL and a credit card, you can easily repay the borrowed amount within a few days without affecting your budget. But if you require a big amount or fund for multiple things you can opt for a loan through instant personal loan app for planned or unplanned expenses. For higher loan amounts, low-interest rates, and flexible loan tenure, the loan with ZinCash. 

 

FAQs:


  • Is it better to take a personal loan and pay a credit card?

  •  

You'll probably get a lower interest rate if you opt for a personal loan in Mumbai than for a credit card. In this case you save your money on the interest charged.  


  • What is a personal loan against a credit card? 

A loan against a credit card is a kind of unsecured personal loan. It charges a low processing fee. You can pay back the loan in monthly installments. Monthly EMIs will be charged on your credit card every month.  


  • How is BNPL different from EMI? 

You can choose tenure at your convenience. The interest rate on credit EMI (if benefited through Amazon or Flipkart) is likely to be lower than the interest for Buy Now, Pay Later schemes. Moreover, the tenure of a BNPL scheme is less likely to be up to 24 months. 

Location: Mumbai, Maharashtra, India

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