Considering Travel Now, Pay Later For Your Next Trip? Here’s What You Need To Know

Travelling the world sounds exciting, but paying for it upfront can be a challenge. Travel Now Pay Later (TNPL) is a financing option that lets you book your dream trip today and pay for it later in easy installments. While this option offers flexibility, it’s important to understand how it works and the factors you need to consider before opting for it.

How Does TNPL Work?

TNPL allows you to book a trip and pay for it later through monthly installments (EMIs). Travel companies collaborate with banks or fintech platforms to offer this service. Some platforms let you make a partial payment at booking or postpone the entire payment to a later date. Depending on the loan size and repayment schedule, some charge interest, while others provide interest-free EMIs.

Things to Consider Before Choosing TNPL

Before opting for TNPL, keep these key things in mind:

1. Repayment Period: You may be required to pay either immediately after booking or upon completing your trip, depending on the platform. Repayment periods usually range from 3 to 18 months.

2. Interest and Fees: While many sites provide no cost EMIs, interest costs may be applied if the repayment is not finished within the specified deadline. You could have to pay more if you extend the period of the payback depending on the interest rate.

3. Penalties for Missed Payments: Missing a payment could lead to late fees and may negatively impact your credit score, making it harder to secure future loans or credit.

4. Refund and Cancellation Policies: When changing or cancelling your trip, verify whether your TNPL payments can be adjusted by reviewing the platform's refund and cancellation policies.