In this day and age, online shopping isn’t really anything special. However, what is steadily on the rise amongst Malaysian users, is the ability to ‘Buy Now Pay Later’! And one of the best ways to do so is with Lazada PayLater – a financial service that allows users to purchase items and pay for them over a period of time. In this article, we’ll be taking a look at how it works, the benefits, how to apply and how it will affect your finances!
Benefits for Malaysian Shoppers Using Lazada PayLater
The benefits offered for shoppers who want to shop more conveniently include:
Interest-Free Purchases for the First 30 Days
What is the biggest benefit of Lazada PayLater? One of the biggest advantages of Lazada PayLater is that you have 30 days of interest-free payment period. If you buy a product and within 30 days choose to pay, you don’t incur any interest. A golden opportunity if you want to get something you don’t have enough cash for right now.
For example, let’s say you bought something that costs RM1,000 using Lazada PayLater. If you decide to pay within 30 days, you will not be charged anything in interest and all you need to do is remember to pay it within 30 days to avoid any additional charges.
Flexible Installment Plans for Easier Payments
Lazada PayLater not only allows for an interest-free payment period, but also the option of paying in a longer installment plan of either 3, 6, or 12 months so you can plan your payments based on your month’s budget.
Example: Buy an item priced at RM1,500 and pay in 6 monthly installments. You just need to pay approximately RM250 a month, with a low service fee.
Lazada PayLater: Enjoy seamless access to track your credit balance and payment activities within the app. Easily check your payment status, outstanding balance, and payment dates with just a few taps.
Application Process and Eligibility Requirements
Users need to apply for this service. However, it's not complicated. Here’s what to know.
How to Apply for Lazada PayLater
- Download the Lazada App: The first step is to download the Lazada app and register an account if you haven't done so.
- Select the Required Product: Once you have selected a product, choose Lazada PayLater option
- Identity Verification: You will need to upload a photo of your MyKad and a selfie for identity verification.
- Fill in Employment and Emergency Contact Information: You will need to provide your employment information, and your emergency contact number.
- Wait for Approval: The application process typically takes around 5 minutes to 24 hours.
What Are the Eligibility Requirements for Lazada PayLater?
To apply for Lazada PayLater, you should meet a few basic requirements:
- Age: Have to be at least 18 years of age.
- Valid Lazada account: You have to have a verified Lazada Account.
- Credit Eligibility: You will be accessed based on your credit line.
You will also receive instant loans if you meet all these requirements but not the same line applies to all of us.
Payment Structure and Interest Rates
Lazada PayLater features a straightforward payment model. The 30-day payment plan incurs no interest. However, if you wish to pay in installments, a service fee of 1.5% will apply for 3-12 month plans.
Example: If you buy a product priced at RM1,000 on a 6-month installment plan, you will be charged RM15 each month. Thus, each month you pay RM175 (RM160 for the principal payment plus RM15 for the company).
Late payment penalties
Failure to pay on time will incur a penalty of RM30. Failure to pay on time, may also affect your credit. For example, being late for over 30 days will incur a penalty of RM30, which may affect your credit!
Impact of Lazada PayLater on Your Credit Score
Did you know? Using Lazada PayLater can affect your credit score. The service reports payment status to credit agencies, so making your payments can improve your score or missing them can hurt it.
Instant Loans and Their Effect on Your Credit Score
If you use the instant loans through Lazada PayLater and make sure to pay on time you could see your credit score rise gradually! However, delayed repayments or failure to pay within the duration could cause a problem on your eligibility.
Conclusion
Lazada PayLater is an excellent option for users who want easier shopping online. With the 30 days interest-free purchase option and installment plans, you have the opportunity for more flexible payments. Although it’s useful, make sure to manage your payments wisely and avoid missing payments which could affect your credit score.
By following some of these useful tips, you can benefit from Lazada PayLater while making your lifestyle more convenient, all without affecting your personal finances. Remember that savings make you richer!
FAQ
Will I incur interest if I pay within 30 days?
No, you will not incur any interest if you pay within 30 days. However, if you choose to opt for the installment plan, a service fee of 1.5% will apply.
What are the eligibility requirements for Lazada PayLater?
Yes, you may use Lazada PayLater for all products except for those under the categories that are not eligible for credit.
Can I use Lazada PayLater to purchase all products?
No. You cannot use Lazada PayLater to purchase digital goods or fine jewelry. Other categories such as electronics and fashion can be purchased using PayLater.
What is the credit limit I can get with Lazada PayLater?
The credit limit starts from RM500 for new users and can increase up to RM10,000 based on your credit profile.