Buy Now Pay Later has become the new way to shop. From fashion to food to flights, BNPL buttons are everywhere. You can split payments into EMIs without using a credit card. No interest. No documents. Just a few clicks. But that is exactly what makes it dangerous.
When you use BNPL apps like Simpl, LazyPay, or ZestMoney, you are essentially taking a short term loan. It may be interest free for a few weeks, but miss a payment, and the penalties start adding up fast. Some platforms charge up to ₹500 per missed installment, and interest kicks in at rates of 24 percent or more.
Worse still, many users lose track of how many BNPL loans they have taken. Because repayments are delayed, it is easy to forget how much you owe. By the time bills start piling up, your credit score may already be affected.
These apps are especially popular among Gen Z users who may not yet have full time jobs or stable incomes. For them, BNPL is an easy way to access spending power without thinking long term. But multiple unpaid BNPL bills can block your chances of getting a real loan in the future.
That is not to say BNPL is bad. Used wisely, it can help manage cash flow. But it should never be a substitute for budgeting. Treat every PayLater swipe like real money leaving your account today, not next month.
The RBI has begun monitoring BNPL platforms closely, and stricter rules around disclosure and credit limits are expected soon. Until then, the responsibility falls on you.
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