Since building a house or renovating one is not a recurring expense, people often try to choose the best option available, even if the budget exceeds the mortgage and the limits of the recharge.
With so many dazzling yet expensive home decor options available on the market, you might be tempted to go beyond your already depleted building/renovation budget to go the extra mile and buy the best items available to decorate the interior of your loved ones home. dreams.
As building a house or renovating one is not a recurring expense, people often try to choose the best option available even if the budget exceeds the mortgage and the limits of the recharge.
In such a case, you may need to explore the options available to borrow more money. Three of these options are personal loan, credit card, and buy it now, pay later (BNPL).
“As a form of consumer credit, the three options – personal loans, credit cards or BNPL – are somewhat similar in nature and allow consumers to be purchased or availed of services in advance with reimbursement on a defined period,” said Amit Chaturvedi, Co.-Founder Paytail.
“However, the difference in the repayment period and the interest rate makes them different from each other. While the repayment term is the lowest for the credit card, it has the highest interest (if deferred) Credit card and personal loan also require certain parameters and are often not offered to people with NTC (new to credit),” he added.
Chaturvedi explains how BNPL as a concept stands out for the flexibility it offers –
- Zero percent interest in certain special cases
- Real-time digital approval
- Credit offers to an individual who is new to credit
- No or no processing fees
- Better transparency
“Given the higher benefits associated with BNPL, opting for BNPL is a better proposition than a personal loan or credit card,” Chaturvedi said.
Commenting on the three borrowing options, Anil Pinapala, CEO and Founder of Vivifi India Finance said, “The best option would be BNPL as with it the price will not change much and the individual will get a longer repayment period than with a credit. card where the free period is much less. Offers should be sought and wherever available, purchases made on BNPL, such as FlexPay offers, should be the first choice.
“But if repayment flexibility is what an individual is looking for while being comfortable paying a little interest, then a credit card might be an option. However, if one is confident that one can repay in a shorter time frame, then our advice would be BNPL. Personal loans, on the other hand, should be avoided for home decor purchases unless one needs a repayment period of two to three years,” Pinapala added.
Speaking on the matter, Anshuman Narain, Vice President of CashBean (PC Financial Services Pvt Ltd) said: “Unless the home loan is coming to the end of its term, it would be advisable to always opt for something as BNPL. This is because BNPL can come without any additional interest on the product and is more transparent in its details and charges than credit cards. It is recommended that for a loan that you may need as an emergency, a personal loan is the best option as it will be quickly disbursed and is usually short term which will not add much to your debt at any time. long term.
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