You are here: Home » Opinion » Editorial » Editorials
Business Standard

Use 'pay later' loan facility only if interest rate is attractive

However, be careful to avoid over-leveraging

Instant loans | Shaktikanda Das


Amazon India disbursed over Rs 600 crore of credit to its customers through the ‘Pay Later’ offering, on the first day of its Great Indian Festival sale, said media reports. Besides e-commerce platforms like Amazon and Flipkart, even fintechs and banks offer this facility.

This loan facility offers access and convenience. Says Mahendra Nerurkar, chief executive officer, Amazon Pay India: “It expands customers’ access to credit. It also allows them to experience a convenient option for making payments and to manage their monthly spend better.”

The product is finding takers among younger buyers. Says Gaurav Hinduja, co-founder and managing director, Capital Float, a leading ‘buy now, pay later’ provider: “The majority of our customers are millennials and young professionals in the 25-40 age group looking for mobile-first, digital financial products. There is also strong interest from customers in tier-II and tier-III towns.”

Kush Mehra, chief business officer of Pine Labs, concurs. “Many of the customers are first-time credit seekers attracted to the idea of instant paperless credit approval.”

First Published: Fri, October 23 2020. 17:35 IST