{"id":7670,"date":"2022-01-31T08:11:05","date_gmt":"2022-01-31T08:11:05","guid":{"rendered":"https:\/\/www.kredx.com\/blog\/?p=7670"},"modified":"2023-10-26T05:50:43","modified_gmt":"2023-10-26T05:50:43","slug":"helping-new-borrowers-with-credit-score-and-credit-access","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/helping-new-borrowers-with-credit-score-and-credit-access\/","title":{"rendered":"Helping New Borrowers With Credit Score And Credit Access"},"content":{"rendered":"

The <\/span>Buy Now Pay Later<\/b> (BNPL) market skyrocketed during the later months of 2020 and is set to reach US$33.6 billion by 2027. In India, BNPL has a massive growth potential due to the growing number of internet users and the significant gap in consumer lending.\u00a0<\/span><\/p>\n

This interest-free payment option allows customers to make purchases without paying for them upfront. Many BNPL providers do not require buyers to go through a hard credit score check, making it easier to access funds.\u00a0<\/span><\/p>\n

Buy Now Pay Later schemes<\/b> are also available for businesses allowing retailers to purchase on credit and repay in instalments. KredX offers the Buy Now Pay Later solution to its clients, allowing them to get instant payments while their buyers can access easy financing.\u00a0<\/span><\/p>\n

Now let us discuss how to access this service and its effects on credit scores.<\/span><\/p>\n

What Is BNPL And How Does It Work?<\/b><\/h2>\n

Buy Now Pay Later<\/b> allows shoppers to buy products without making any upfront payment and repay the amount later in three to four instalments with no interest attached. The interest-free period usually ranges from 15 to 45 days, while the credit limit is usually Rs. 500 to Rs. 30,000 and may go up to a lakh depending on the provider.\u00a0<\/span><\/p>\n

The BNPL facility works well for young and new-to-credit buyers, who are often cash strapped and do not have access to credit cards. In addition, the applications are easy, as the provider typically does not need to conduct a hard credit check for approval.\u00a0<\/span><\/p>\n

First-time buyers have to complete KYC formalities on the lender\u2019s platform. They will then settle the buyer\u2019s bills directly with the merchant. After that, the borrower has to repay the credit within a stipulated period, often in three or more instalments.\u00a0<\/span><\/p>\n

How Can One Avail BNPL Services In India?<\/b><\/h3>\n

The Buy Now Pay Later<\/b> facility is available for a wide range of options, from food delivery and travel booking to purchasing gadgets and apparel. Quite a few online merchants and fintech companies offer this service in India. This includes:<\/span><\/p>\n