Instalment loans are considered unsecured loans. Historically, they have mainly been used for more costly purchases in-store. However, today this option is available for most purchases online with a Buy Now Pay Later option at checkout, regardless of price.
When you take out an instalment loan in the name of Buy Now Pay Later (also known as point-of-sale financing), you immediately receive the product you bought. When paying the amount back to the retailer, you can spread the cost over a set number of payments, known as instalments. The repayment schedule can differ depending on the BNPL offering.