Most of us have taken a loan at one time or the other in our respective lives. So, we all know that interest on the borrowed amount starts accumulating from the very next day. What if you are told that you will not have to pay interest for one month. Most probably, your joy will know no bounds.
Ironically, banks and financial institutions begin to charge interest on the borrowed amount from the very next day. Further, any delay in repaying the borrowed EMI amount affects the credit score, which then impacts one's creditworthiness. However, a credit card is also a very costly affair. All banks and institutions charge a high rate of interest on credit card usage. It is a vicious cycle no one would willingly ever want to enter.
Therefore, when a borrower comes across a lender who does not charge interest for the first month, he starts thanking his good stars.
That's true - there are many pay later websites and apps available today that offer the service of pay later with no interest for the first month. These apps and websites let users buy goods now & give them the option of paying later. They charge zero interest on the credit amount for the first month (30 days). This feature is available on various. Pay later applications that can be downloaded from Google Play Store for Android devices or App Store for IOS devices.
If this makes you anxious to know more about the various Pay Later apps, you should go through the websites of all financial institutions providing this feature and know all details. Let's take a look at the details mentioned below.
What is the pay later option?
As the name suggests, you can purchase any product or service and instead of paying the amount at that time, you pay the due amount later. This enables the user to purchase without worrying about the funds. Let's explore some of the features below:-
- The pay later app or website allows you to buy groceries, clothes and a wide range of products and services using the pay later option.
- The pay later app helps in building a good credit score.
- Generally, no activation fee is required by the lender.
- It can be used for online and some offline purchases as per the user's need.
- The amount which can be availed using the pay later option depends on different lenders.
- The pay later app has no additional purchasing fees, so they are interest-free loans.
- The user can use this feature and can also turn the pay later option into some EMIs for a maximum of upto 6 months.
- If the user is unable to pay the amount, then a penalty needs to be paid to the lender.
How to activate pay later?
To activate buy now pay later option, follow the steps mentioned below:-
- Step 1: Download the pay later app or go to its website.
- Step 2: Click on activate "Pay Later" option. If you are using an app, you will need first to enter your mobile number and go through OTP verification.
- Step 3: After this, the user needs to enter his/her personal details like Aadhaar number, PAN number, mobile number, email address and others.
- Step 4: Post this, there will be an Aadhaar verification. For this, the PAN number must be linked to the Aadhaar number.
- Step 5: An OTP would be sent to your Aadhaar registered mobile number.
- Step 6: You need to enter the OTP and click on submit.
- Step 7: After the verification is done, the pay later will get activated. The amount available for your pay later appears on the screen.
Advantages of Pay Later
Below mentioned are some advantages of pay later:-
- One can get credit up to a fixed amount without going through any application process
- There is no interest charged, but it depends on the lender.
- The money can be converted into some EMIs
- No need to visit any bank for availing pay later
- Your credit score gets improved if you pay regularly.
