While many short-term BNPL plans are interest-free for the consumer, provided all payments are made on time, instant loans almost always involve a fixed interest rate that is applied to the loan amount, along with potential processing fees.
The festive season is a major driver of increased spending, which is why this time of year sees a substantial rise in people turning to Instant Loans and Buy Now, Pay Later (BNPL) to manage expenses and purchases. While both options provide immediate funds to consumers, they come with their own pros and cons. The choice also depends on the size of the purchase, as BNPL is more suitable for small-ticket purchases, while instant loans are better for big-ticket purchases.ย
“Festive shopping often calls for quick financial solutions, and both BNPL (Buy Now, Pay Later) and instant loans have become go-to options for consumers looking to manage their spending smartly. BNPL offers the ease of splitting payments into smaller instalments, which works well for low-value, frequent purchases. However, juggling multiple BNPL transactions can lead to confusion and missed payments if not tracked properly. Instant loans, on the other hand, offer quick access to a lump sum amount that allows consumers to make purchases in one go and manage repayment through a single, clear timeline. The growing festive demand for instant disbursals and simplified processing has made quick loans a preferred choice for consumers who value convenience and control in their financial decisions,” said Vikkas Goyal, Founder, Rupee112.
While many short-term BNPL plans are interest-free for the consumer, provided all payments are made on time, instant loans almost always involve a fixed interest rate that is applied to the loan amount, along with potential processing fees.
“The biggest advantage of quick loans is the speed, funds are often disbursed within minutes which is helping borrowers manage last-minute gifting, travel, or home upgrades without financial stress. While both options cater to the growing appetite for instant credit, itโs important for consumers to understand their repayment capacity and choose the option that best aligns with their spending habits and financial discipline,” Amit Bansal, Founder, BharatLoan, added.ย