In today's modern age, online shopping is no longer something extraordinary. However, one thing that is becoming increasingly popular among Malaysian users is the ability to buy now and pay later. One of the best ways to enjoy this convenience is with Lazada PayLater – a financial service that allows users to purchase products and pay within a specified period. In this article, we will delve into the benefits, the application process, and the impact of using Lazada PayLater on your finances.
Benefits of Lazada PayLater for Malaysian Shoppers
Lazada PayLater offers various conveniences for shoppers who wish to manage their purchases more flexibly. Here are some of the key benefits that make this service highly attractive:
Interest-Free Purchases for the First 30 Days
One of the main benefits of Lazada PayLater is the interest-free payment period for the first 30 days. This means that if you make a purchase and choose to pay within 30 days, you will not incur any interest charges. This is a golden opportunity for users who want to buy a product but don't have enough funds at the moment.
Example: You purchase a product priced at RM1,000 using Lazada PayLater. If you choose to pay within 30 days, no interest will be charged, and you only need to ensure that the payment is made within this period to avoid any additional charges.
Flexible Installment Plans for Easier Payments
In addition to the interest-free payment period, Lazada PayLater also offers the option to pay in longer installment plans, namely 3, 6, or 12 months. This gives you the flexibility to tailor your payments according to your monthly financial capacity.
Example: If you purchase an item priced at RM1,500, you can opt to pay in 6 monthly installments. Each month, you will only need to pay around RM250, with a low service fee.
Easy Credit and Payment Management
Lazada PayLater provides users with easy access to monitor their credit balance and payment activities through the Lazada app. With just a few clicks, you can view the payment status, outstanding balance, and upcoming payment dates. This makes financial management more convenient and transparent.
Application Process and Eligibility Requirements
To use this service, users need to apply and meet certain eligibility criteria. While the process is straightforward, here are some things you should know.
Steps 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 already.
- Choose the Desired Product: After selecting a product, choose the Lazada PayLater option during checkout.
- Identity Verification: You will need to submit a photo of your MyKad and a selfie for identity verification.
- Fill in Employment and Emergency Contact Information: You will be asked to provide details about your employment and emergency contact number.
- Wait for Approval: The application process usually takes between 5 minutes to 24 hours.
What Are the Eligibility Criteria for Lazada PayLater?
To apply for Lazada PayLater, you need to meet a few basic requirements:
- Age: You must be 18 years old or above.
- Valid Lazada Account: You need to have a valid and verified Lazada account.
- Credit Eligibility: Your application will be assessed based on your credit record.
Instant loans may also be offered to those who meet these requirements, but the credit limit granted varies based on the individual's financial profile.
Payment Structure and Interest Rates
Lazada PayLater offers a clear and easy-to-understand payment structure. For the 30-day payment plan, no interest is charged. However, if you choose to pay in installments, a service fee of 1.5% will be charged for installment plans ranging from 3 to 12 months.
Example: If you purchase an item priced at RM1,000 and choose a 6-month installment plan, a service fee of RM15 will be charged each month. This means that each month, you will need to pay RM175 (RM160 for the principal payment and RM15 for the fee).
Late Payment Penalties
If you fail to pay on time, a penalty of RM30 will be imposed. Additionally, failure to pay within the specified period may affect your credit eligibility.
Example: If you are late for more than 30 days, a penalty of RM30 will be imposed, which could negatively impact your credit score in the future.
Impact of Lazada PayLater on Your Credit Score
Did you know that using Lazada PayLater can affect your credit score? Yes, this service reports payment status to credit agencies. Therefore, if you make payments on time, it can help improve your credit score. On the other hand, failure to make timely payments can have a negative impact on your credit score.
Instant Loans and Their Effect on Your Credit Score
If you use instant loans through Lazada PayLater and ensure payments are made on time, you can enjoy a gradual improvement in your credit score. However, delays or failure to pay within the specified period can lead to problems with your credit eligibility.
Conclusion
Lazada PayLater is a very useful option for users who want to shop online in a more flexible and convenient way. With the 30-day interest-free purchase option and installment plans that provide flexibility in payments, this service meets the needs of many shoppers in Malaysia. However, like any financial service, it is important to manage payments wisely and ensure that payments are made on time to avoid penalties and negative impacts on your credit score.
By following some of the practical tips shared, you can make the most of Lazada PayLater to improve your lifestyle convenience without compromising your personal finances. Don't forget, managing finances wisely is the key to a more stable and secure future!
FAQ
Do I incur interest if I pay within 30 days?
No, if you pay within 30 days, no interest will be charged. However, if you choose an installment plan, a service fee of 1.5% will be applied.
What are the eligibility requirements to use Lazada PayLater?
You must be 18 years or older, have a valid Lazada account, and meet the credit eligibility criteria. New users are typically given a credit limit of up to RM8,000.
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.