Banking systems are changing, Peoples are now don’t want to hold cash or even a simple Physical debit or credit cards. Because we have already 5 to 10 debit and credit cards from multiple banks and we do not want to increase our wallet weight. Then what is the solution? The Digital or Cloud wallet or Card.
Digital or Virtual Debit or Credit Card is not a new concept nowadays. You can create your Virtual Debit or Credit card within 5 minutes from your home, you do not have to go Bank for that. But can you get a loan from home? It’s a tricky question. More precisely, can you avail of a virtual loan from a bank or any financial institution without visiting Bank?
Opening a savings account in a Bank is not a big task, but sanctioning a Loan is really a big task if you are an ordinary citizen like you and me. You can open a Savings account easily with a Valid PAN or Adhaar Card, but you can not get a loan just approaching a bank. Because the Bank Authority will analyze several aspects like your CIBIL score, your Past track record, net-worth, etc before sanctioning any Loan or Credit limit to you.
To simplify the process of Credit limit appraisal and getting an instant personal loan or credit limit, several companies in India have introduced Digital Credit or pay later Apps or Buy Now Pay Later App.
Here, in this article, we will discuss the list of some best pay later app in India and how to create digital credit in India for an instant online personal loan from home without a credit card.
Before getting into the actual topic, let us have some ideas about Pay later app and Digital Credit card in India.
- Comparative analysis on Best Mobile Banking Apps in India
- Best way to pay the credit card bill online in India
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What is the Pay Later App?
As the word indicates itself you can pay your bill later using Pay Later or Buy Now Pay Later App or sometimes we also call it instant personal loan app. Pay later App in India is somewhat similar to a credit card where you can pay your bill later after some pre-approved period. The period varies up to 14 days after your actual payment. For example, if you purchase an item on the 1st day of any month, then you have to pay your bills before the 14th of the month.
It is a kind of instant personal loan arranged for you by any financial institute or App. The basic feature of the Pay Later App and a Credit Card is the same. You can enjoy some certain interest-free period, after that the App will charge a certain percentage of interest against your outstanding unpaid amount.
Pay Later App can be utilized for a quick personal loan, meet up some urgent personal need or purchase any products online when you do not have instant cash or balance in your bank account. It is something like buy now pay later type of App.
What is Digital credit?
Digital Credit is a kind of cloud-based or virtual short-term loan which is quickly recoverable. Sometimes we also can call it micro-credit. Digital credit is a small amount of virtual loan for quick personal needs and can be recoverable within 30 days.
A credit card is also a type of micro-credit or a short-term loan where your credit card issuing bank gives a certain limit up to which you can pay and recover the balance within 30-45 days. Your bank also provides you with a physical card with a unique card number and other details.
Virtual or Digital Credit and Virtual Credit Card are not the same.
To know more about the virtual credit card, you can read the article from here.
Before providing you a Credit card, the Bank officials will thoroughly and extensively verify your creditworthiness, your repayment capability, earning details, etc, so that you should not make any default of credit card repayment.
But how is it possible when the loan is virtual? Because in Digital Credit or Pay Later App, users only have to install the app and can get the benefits of Virtual Credit Limit.
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Digital Credit or Pay later is a completely paperless process for getting any quick personal short-term loan or insta-credit.
How Pay Later App Works?
Pay Later app simply uses the user’s CIBIL database to evaluate his or her creditworthiness. Your mobile number, PAN Card number, Aadhaar Number or any other personal details, all are already stored in the CIBIL database, if you have been granted any loan/credit card previously from any Finance Company.
If you have a good CIBIL score, you might get a higher credit limit from the Pay Later App providers. Sometimes, if you are a loyal customer of any eCommerce website, then also you may get Pay Later option. For example, Flipkart Pay Later option available to some selective customers with an initial credit limit up to Rs.5000.
With the implementation of UPI 2.0, several big eCommerce websites have also started to implement Buy Now Pay Later option for their App users. One of the many features of UPI 2.0 is the pre-approved debit mandate to debit the Account Later and the customer will have the option to select the Pay Later option at the time of making payment at Payment Gateway. For example, Amazon India and Mi India have already integrated the UPI option in their respective Mobile App Amazon Pay & Mi-Pay, though the Pay Later option has not been started yet, in future we may find the Pay Later option in Amazon Pay or Mi-Pay App.
Best Pay Later App in India for instant Personal Loan
As the smartphone user base in India has been increasing every day, banking is also getting more digitalized. Digital Payment is the most convenient option, especially for the Tech-savvy younger generation.
Pay Later service is still in the initial stage, but it can be a great alternative to Physical Credit cards in India in the future.
Here is the list of some Best Pay Later App services in India for an instant personal loan
ePayLater is a type of Buy now Pay Later App where you can get instant credit up to Rs.20000.00. You can create a free ePayLater account by simply downloading the app from the Android Play Store.
IRCTC has already integrated pay later service from this Mumbai-based startup.
- Get up to Rs.20000 instant credit.
- Hassle-free paperless Digital Credit
- 14 Days Interest-Free Period.
- Buy IRCTC Rail Ticket
Get ePayLater for Android here.
2. Simpl Pay
Simpl Pay is a Mumbai-based startup that first initiated the concept of Buy Now Pay Later in the year 2016. The best thing about Simpl Pay is its transparency. Your bill amount will show the exact same amount that you have paid. No extra hidden charges.
With Simpl Pay, you can pay your bill instantly in various merchant websites without login into your Bank Account.
Simpl Pay is a unique payment service and growing very rapidly. Several merchants like BookMyShow, Zomato, Fresh Mneunow integrating Simpl Pay in their payment processing gateway. Here you can see the complete list of the merchant, where you can use Simpl Pay Digital Credit.
You can create a Simpl Pay Account from here.
3. Flipkart Pay Later
Flipkart Pay Later is a customer-centric initiative of Flipkart, integrated with Flipkart App. You may find the Pay Later option in Flipkart app if you are a loyal customer of Flipkart.
The Pay Later option may not be available to every Flipkart users.
Flipkart Pay Later service is similar to other Pay Later services, where you have the option to settle your bill after some free interest-free period.
For more details on Flipkart Pay Later visit here.
4. Amazon Pay Later
Amazon India has also recently introduced Amazon Pay Later service which similar to Flipkart Pay Later service. As per the Amazon India blog, Amazon Pay EMI has been re-branded to Amazon Pay Later. You can avail Amazon Pay Later service starting from 1 month to 12 months with zero processing fee & foreclosure charges.
To avail the Amazon Pay Later, you do not require any credit card, just you need an Active Amazon Account, Valid PAN card, Bank Account, and valid address proof like Adhaar, Voter, or any other OVD.
You can avail a maximum of Rs.60000 digital credit in a year from Amazon Pay Later as per RBI guidelines.
The Amazon Pay service is not active for all the App users now, only a few selected few Amazon users can see the Amazon Pay Later option at the time of check out.
How to register for Amazon Pay Later?
5. ICICI Bank Pay Later
ICICI Bank has also integrated Pay Later service for their selected iMobile, Pockets & internet banking users. ICICI Bank Pay Later is available on an invite basis. If you are selected for Pay Later service, you can see the Pay later Option as pop up at the time of making payment.
ICICI Bank’s PayLater service selects users based on a self-developed algorithm with the help of data-analytics and uses its customer’s database to identify the most suitable person for this service. The PayLater service uses the technology, BHIM UPI 2.0 for making payments on its payment gateway.
To know more about UPI 2.0 version, read the article from here.
ICICI Bank is the first bank in India, extended this Digital Credit system for its customers. The initial credit limit for Pay Later qualified customers is Rs.20000. Customers can use the Digital Credit limit for online eCommerce websites, hotel booking websites, and other payment gateways. The Pay Later service can also be used at Physical Stores using UPI technology.
You will see the Pay Later option at ICICI Bank payment gateway at the time of making the payment if you are enabled with PayLater service.
ICICI Bank has recently integrated its PayLater Option on its Digital Wallet cum Bank Account App Pockets. You can see the Pay Later option just at its bottom left corner of the App.
For details on ICICI Bank Pay Later service visit here.
Launched in April 2017, the LazyPay service offered by PayU India to capture the growing online Tech-savvy mobile users in India. Lazypay is one of the best pay later app in India and gaining popularity every day due to its various discounts and offers programs on several eCommerce websites in India.
LazyPay gives you instant personal credit up to Rs.100000 which you can pay in EMI, with the affordable interest rate.
Several popular merchant websites like BookMyShow, OYO Rooms, Goibibo, Myntra, Zomato, Swiggy already integrated LazyPay at their payment gateway. See the complete list here.
You may also find the LazyPay option on the IRCTC website in the future.
Visit the website from here for more details.
7. True Pay Later from True Balance App
“True Pay Later” is an additional service offered by the popular recharge App True Balance. The True Balance app is known for “Earn Money by Recharge, Loan, Payment”, is a very popular app with more than 10M downloads. The “True Pay Later” service is an add-on service of 10 days interest-free credit period where you can pay Utility Bill Payment services like Electricity Bill, Gas Bill, Prepaid and postpaid mobile or DTH recharges. This credit-based digital payment service available only for the Utility Bill Payments, not for the purchase of any Gift Card from the App. The Credit Limit depends on the past transaction, you made from the App.
If you miss the scheduled date of payment, the app will charge 1% interest daily of the outstanding balance as a penalty fee.
The App also has the option of Instant Personal loan up to Rs.50000, where you have to pay the interest as a regular loan.
To avail the service, Login to App>Go to Recharge> Select the service you want to avail>Enter the amount> Select the option Pay Later and Tap on Pay.
Download the True Balance App.
You sing up easily just uploading your few documents like PAN Card, Mobile Number, and instantly get your credit limit. The whole process is done online.
ZestMoney is available in several prominent eCommerce websites like Flipkart, Amazon, MakeMyTrip, Jabong, etc. See the complete of merchants here.
For more details on ZestMoney, visit the website from here.
9. Paytm-ICICI Bank Postpaid App
Paytm, India’s largest e-wallet app, in partnership with ICICI Bank, has also launched Buy Now Pay Later app for its app users. The app is still in beta stage, only available to selected customers of ICICI Bank, non-ICICI Bank users cannot avail the Pay Later service of this App.
The basic concept of this app is similar to Flipkart Pay Later App. If you are already a trustworthy App user of Paytm and an existing customer of ICICI Bank, then you may get selected for a small amount of instant digital loan for online use like payment of a movie ticket, or mobile-DTH recharge, etc. The initial credit limit ranges from Rs.500 to Rs.60000 and the interest-free period up to 45 days.
You will get a statement on the 1st day of the month by an SMS and you have to pay your dues by 7th of the month. If you pay your dues timely, then you may get an enhanced credit limit in the future.
Paytm recently has tied up with Clix Capital to offer Digital Credit to its Paytm Postpaid customers. The loan will be available as deferred payment credit or Buy Now Pay Later type credit for the consumers and Credit limit for the merchants.
For more details on Paytm-ICICI Bank Postpaid visit here.
Requirement for Creating Paytm-ICICI Bank Postpaid:
- Aadhaar Verified Paytm Payment Bank Account.
- ICICI Bank Account linked with the same mobile number.
How to apply for Paytm Postpaid?
Right now, Paytm Postpaid is on an invite basis App. To apply for Paytm Postpaid you have to log in your Paytm Account via App> Go to Profile Section> Select Paytm Postpaid and apply.
Initially, you may get a credit limit according to your App usage. The limit may increase if you pay dues on time.
Note: Paytm Postpaid is now available to all Paytm KYC verified customers.
10. LoanPass by ETMoney
LoanPass is another instant Digital Loan application developed by ETMoney, for an instant loan as low as Rs.3000 without any paperwork. ETMoney is an excellent investment App developed by Times Of India Group offers services like the smart deposit in liquid funds, investment in Direct Mutual Fund, Personal and instant Loan, and buying different insurance policies online, and all can be done at this single App.
At LoanPass you can get a loan up to Rs.5.00 Lacs and repayment in flexible EMI ranges from 1 month to 36 months. You can avail the loan as Cash directly to your Bank Account or as a Credit Limit.
LoanPass is a completely paperless digital process and approved instantly based on your CIBIL score. You can check your eligible credit limit by providing your PAN and income proof details.
Download the ETMoney App from here.
11. MobiKwik Boost
Popular mobile wallet and Payments App in India, Mobikwik has also started to offer instant hassle-free and collateral-free personal loans up to Rs.1.00 Lacs which can be availed from Mobikwik Android or iOS App. You can use the loan for any personal requirements like medical, online shopping from eCommerce websites or any other short term needs.
To get the Mobikwik Boost Loan, you have to log in to Mobikwik App and click the Boost Loan option. After submitting your PAN and Aadhaar Number, the App will extract your CIBIL score, and based on your CIBIL score, your credit limit will be reflected on the screen along with the rate of interest of the loan. You need to provide your required loan amount and click on Boost Credit. The amount will be instantly credited to your Mobikwik e-Wallet. You can set your EMI and ECS mandate by providing the bank account details for Auto-Debit.
For details on Mobikwik Pay Later Loan approval process visit here.
12. MI Credit
Xiaomi, the Android smartphone maker recently introduced the MI credit App for its brand MI India. The MI phone maker has tied up with several micro-credit providers in India like Aditya Birla Money, Zest Money, etc, to provide instant personal loans to the MI phone users in India.
The sanctioning process is a completely paperless, you can avail the loan by installing the MI Credit App from Play Store, Upload KYC documents (ID & Address Proof) for online verification. You can get up to Rs.2.00 Lacs of instant credit for a period ranges between 91 days to 2 Years. The company charges interest 1.35 to 3.00% per month and 1.99%+GST as processing fees.
How to Apply?
You can apply for the MI Credit by installing the app from Play Store>login with your MI account> Upload Your KYC Docs>Online Verify your Address> Add Bank Details> Apply For Instant Loan. Please note that its a MI Phone specific instant digital loan.
Digital or Virtual Credit is the future of Banking. Everyone can not get a credit card, because it is a long application process.
As the online eCommerce market in India is growing every day, people need instant credit with flexible EMI and less procedural hassles. The Pay Later option may fulfill the gap of instant credit requirements.
Pay Later or Digital Credit can be the best alternative of Physical Credit card in the future. Several prominent Finance companies, NBFCs or Banks may foray into this type of Virtual Credit market in the near future.
If you have any other recommendations, or want to add any more Pay Later App, then please share it with us below.
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Meanwhile, you may also like to read…
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