How many times have you heard the sentence: ‘Will you be paying via card, cash or personal loan’? If you are familiar with these words over a retailer’s counter, you certainly are an avid shopper. While plastic (credit/ debit card) money has ruled the roost over cold hard cash in recent years, the trend towards adding a loan for shopping is slowly on the rise.
Pay By Cash or Loan?
Indeed, many major retailers are now offering buyers the convenience of taking a loan even on buying regular groceries these days. In place of utilizing cards or cash, people will soon be offered a personal loan with fixed/ variable payment installments. In fact, a number of online portals offer EMIs on purchases which vary their interest rates according to buyers’ banks. But now the horizons are widening with options soon to be available on vacation packages, hotel stays, furniture and other commodities.
Third-party loaner agencies have been encouraging easy and flexible payment options of late. One can expect even more loan providers joining the bandwagon in the years to come.
What do Current Trends Say?
At present, these POS (point of sale) loans seem to appear on portals for large-scale acquisitions such as musical instruments, electronic goods, furniture, and bedding. However, they are spreading their tentacles towards other retail regions even as loan suppliers intend to collaborate with tangible shops. An online clothing store by the name of List offers brands such as J Crew, Marc Jacobs and Burberry supplies loans via 3rd party provider. Additionally, Walmart is mulling over the idea of providing checkout loans on commodities over $200 as stated by news journals.
To Buy or Not to Buy?!
Needless to say, such loans are mouthwatering and come with low monthly installments and comprise of a checkout procedure which is effortless as applying for a retail outlet credit card. Conversely, there is a flip side to as stated by many professionals pertaining to high rates of interest for shoppers who are new to card shopping and who buy stuff frequently.
It all boils down to using a personal shopping loan when incredibly necessary or otherwise sticking with conventional modes of paying.