Of late, many retailers have been offering ‘Buy Now, Pay Later’ or BNPL schemes to help people finance their purchases. Also known as a point-of-sale installment loan, these short-term plans are an effective way for companies to improve their sales by making products more affordable for their customers. These loans typically charge no interest and are fairly easy to get approval for. Here’s everything one needs to know about BNPL plans: How does BNPL work? All BNPL plans have different rules, terms, and conditions. However, most of them offer short-term loans with fixed payments without any interest or additional fees. The payment amounts and due dates are shared upfront with the customers, making it easier for them to plan their budget. Every payment is worth the same amount. After approval, a small down payment (generally 25% of the total amount) is made, and the rest is paid in pre-set installments. These BNPL plans can be availed via special apps or one’s credit card at participating stores. With these plans, the payments are automatically deducted from the source account using shared details (debit or credit card, or bank account number). Some lenders may also accept checks and credit transfers, but this is rare.