With the Inception of technology and expansion of Fintech companies, several innovations have come into existence. Buy now pay later loans in Kenya might sound new to you but could transform your life as regards shopping and paying in installments or later. The platform is much clearer about interest and payments over time after purchase of a product.
What is buy now pay later loans
Buy now and pay later loans are loans you get through purchase of products and you pay later. They offer the loan to individuals in need of products and tangible goods. You apply on the loan app or the lender’s website and then get approved and have your products delivered to you. Often, you are given a specific date to pay up. Some lenders require you to pay the loan bit by bit, covering a specific period.
4 buy now pay later loans in Kenya
List of buy now and pay later loans in Kenya are:
- Aspira
- Overhere
- Beba Sasa Lipa Pole Pole
- Julla
What is Aspira?
They launched this loan app in 2018. You download the app on your phone through Google play store. You can purchase items on the online retail store on the app and pay later. There are various loans on the platform and they include home loans, equipment loans, furniture loans, etc. On the app, they ask you to submit your latest payslip, bank statement or M-Pesa statement, and National ID number.
Features of Aspira app
The various features of Aspira apps are;
- It is easy to operate
- It has different loan options for different products
- Has a 4.9mb memory space
- 2,126 reviews on Google play store
- 3.2 star rating
- More than 100k downloads on Google play store.
About Overhere
They offer 50% initial payment with a 3-month payment plan. The 50% is charged only after the delivery of a product with Zero (0%) interest on products. However, the remaining 50%, 25% out of it is paid in the second month after the initial deposit, and the second 25% in the third month. They also render free shipping delivery within Nairobi.
What is Beba Sasa Lipa Pole Pole
Safaricom in partnership with KCB offers a platform that allows you to buy products like phone, tablet and other mobile and pay 6 months installment at 0% interest. Pay through a KCB credit card. Steps for application:
- Visit the Safaricom website and read through all you need to know about the platform.
- Download the price list because it will help guide you.
- Also download the application form and fill it properly. Try to cross check all relevant information.
- Scan the form and send to their email and wait for review
- They review your application and make sure you meet up all the requirements.
- Once it is approved, you can go collect the device/product from any Safaricom outlet in Kenya.
Julla and how it works
Julla focuses on two sets of people, the consumers and in-store merchants.
The consumers or borrowers are the individuals who need a product instantly but want to pay. While in-store merchants are those who want to increase sales and customer traction.
How Julla platform works:
- The borrower who is now the customer sees the option to spread the cost & pay later.
- The borrower pays with Julla.
- The Merchant is paid instantly by the Julla platform.
Types of Buy now pay later loans
The two types of Buy now pay later loans are:
- Merchant transaction fee: they charge the merchant a transaction instead of charging the borrower an interest. Many buy now pay later loan apps operate in this format.
- Shopper interest loan: this is more rampant in Kenya and a sale loan where the borrower is offered an immediate loan. The borrower or the consumer applies, gets qualified and receives the item and pays overtime.
Things most buy now pay later loan apps need to know, determine and verify
Most buy now pay later loan apps have various elements they need to determine and verify before approving your loan. They are:
- Customer’s current income and salary
- Average expenses
- Credit worthiness
- Other financial commitments
What to keep in mind when applying for buy now pay later loans
There are few things to be mindful of. They are:
- Overspending
- Be rest assured that when cost rises, you pay as it rises
- Management issues may arise if you spend extravagantly
- If you cannot make early repayment, your name will be blacklisted
Fees associated with buy now pay later loans
The fees associated with some buy now pay later loans are:
- Late fees
- Monthly account keeping fees(for some lenders)
- interest rates
- Establishment fees
- Processing fees
Tips to managing buy now pay later loans
The tips to manage the platforms associated with by now pay later are:
- Budget for bills
- Link the app to your debit account
- Choose the one with a zero or low interest rates
- Never make the mistake of buying what you don’t need. Because you might not return it.
What you need to do when you encounter difficulties on buy now pay later loan platforms
When you encounter a problem, follow the procedure below:
- You can contact the lender directly from their website or leave a review and a question on their loan app
- You can give the lender a call
- Visit the lender’s physical office and may your complaints.
Conclusion
The first probable thing to achieve on this platform is to make a transaction which you are not charged immediately but you pay later. You follow that up by sharing information about yourself. It is considered by various requirements being asked for.
Conclusively, product financing is a solution that allows borrowers that purchase a product to pay monthly while enjoying reliable usage.