Festive Season Shopping : Despite the COVID-19 epidemic, like last year, people are seen in a mood to celebrate the festivals with pomp. COVID-19 has badly affected the earnings of the people and inflation has also increased. But despite this, people are flocking to both online and offline markets for festive shopping. This time many people may have to resort to credit cards for purchases due to inflation. There are other options like credit cards to pay later. If you do not have money for shopping this festive season, then you can consider various options like credit cards, Buy Now Pay Later (BNPL) and personal loans. We will tell you here which one of these options may be better for you.
Manikanta Racharla, Chief of Growth and Co-Founder at Coin.ai, says, “Last year was difficult due to the pandemic, yet people are preparing to shop during Diwali and Christmas. There are many options for people to pay later, including credit cards, from which one can choose according to their needs. According to Racharla, the benefits of using credit cards, personal loans and BNPL for festive shopping are as follows:
Credit Card
Most people prefer credit cards to borrow money and repay it later. You do not get any interest on the loan taken through this for about 45 days. Apart from this, you can convert the due amount into EMI of up to 12 months. Most credit cards also offer reward points and cash back.
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buy now pay letter
Through this, instant loan is available for purchases. In this, the payment of the outstanding amount can be done for about 15 days. BNPL is considered better for small purchases ranging from Rs 3,000 to Rs 10,000.
personal loan
If you need more money then a personal loan can be better. It may take one to two weeks for you to take it. However, its interest rates are lower as compared to credit cards.
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What do experts say
Talking about these three options, Racharla said, “If you already have a credit card then this option is best for you. If not, then you can opt for BNPL. When shopping on EMI, the credit card interest rate can be cheaper as compared to BNPL. Giving his opinion on these three options, Abhishek Soni, CEO and Co-Founder, Upwards said, “BNPL or credit cards are better when it comes to online shopping as they offer loans at 0 percent EMI. A personal loan can be better for a family function or for expenses like renovating your home as you have to pay cash for such expenses and personal loans are completely available online.”
(Article : Amitava Chakrabarty)
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