Using Buying Now, Pay Later (BNPL) for Diwali, Dussehra, and Dhanteras online shopping? Are you aware of these 5 risks?

Buy Now, Pay Later (BNPL) can make online shopping for Diwali, Dussehra, and Dhanteras more convenient, but it carries risks. Understand 5 key concerns, including overspending, late payment charges, credit score damage and debt accumulation, before choosing BNPL. Read on to learn more. 

The festive season brings lucrative online shopping offers, deals, and opportunities on electronics, smartphones, home appliances, clothing, and jewellery. Buy Now, Pay Later (BNPL) services allow shoppers to purchase products and services immediately and pay later.

These payments are either made in instalments or by a specified due date, as per the terms and conditions of the purchase agreement.

Now it is clear that BNPL services can offer individual purchasers and customers comfort, ease and convenience. Still, it can also encourage overspending and create repayment complications if it is utilised without strategic planning.

That is why, before opting for BNPL for Diwali, Dussehra, or Dhanteras shopping, it is prudent for aspiring borrowers to clearly understand the basics of BNPL, acknowledge the possible complications and challenges this scheme entails, and consider the following five risks. The complete list is discussed below for your reference:

5 risks of using BNPL for festive shopping