Personal Loan vs BNPL (Buy Now, Pay Later): A Practical Comparison

This article is general information, not financial advice. Please verify terms with your bank/NBFC before acting.

BNPL suits small, short-term needs; PL suits larger goals.

BNPL splits a specific purchase into short instalments (often at zero cost if repaid on time). Personal loans disburse a lump sum usable for diverse needs, repaid over 1–5 years.

BNPL advantages: fast checkout, minimal paperwork, and low/zero cost during promo periods. Risks: late fees and the temptation to overspend.

Personal loan advantages: larger ticket sizes and predictable EMIs. Costs include interest and processing fees; approval depends on credit profile.

• Use BNPL for small, essential purchases you can clear in weeks.
• Use personal loans for larger, multi-purpose needs with a defined budget and timeline.
• Avoid stacking multiple BNPLs—track all dues to protect your credit health.