Buy Now, Pay Later: A Boon or a Burden for Mumbai Homebuyers in 2025?

According to recent data from the Inspector General of Registration (IGR) and Anarock Research, Mumbai saw 52,896 property registrations in the first four months of 2025—an 8% increase from 48,819 during the same period last year. Industry experts attributed part of this growth to innovative sale strategies, particularly the growing popularity of Buy Now, Pay Later (BNPL) schemes in the housing sector.

Making Homeownership More Achievable

Schemes such as BNPL are being credited with making homeownership more attainable, especially for first-time buyers. Shraddha Kedia-Agarwal, Director at Transcon Developers, was quoted saying that such schemes allow homebuyers to move into their new homes by paying only a fraction of the property value upfront. The remaining amount is typically deferred until possession and is often repaid through low- or zero-interest instalments—relieving buyers of a heavy initial financial burden.

Experts Highlight Key Considerations

While the model is attractive, financial advisors urge caution. Ram Naik, Co-founder and CEO of The Guardians Real Estate Advisory, highlighted several important factors that buyers must assess before opting for BNPL:

• Initial Payment: Buyers should be aware of the upfront cost, which typically ranges between 20% to 30% of the property's value.
• Credit Impact: Missed or late instalments can damage credit scores and potentially impact future loan eligibility.
• Hidden Charges: It's essential to check whether the scheme is truly interest-free or if additional fees are involved.
• Repayment Terms: Understanding the schedule and ensuring it aligns with one’s financial capacity is crucial for avoiding future stress.

Pros and Cons: A Double-Edged Sword

Aspirational homebuyers, like Shaunak Pai, have welcomed BNPL as a lifeline, allowing them to spread payments over time and reduce the strain on their savings. Pai mentioned that the model could finally help him realise his homeownership dream within this year.

However, the scheme also has its challenges. Shraddha Kedia-Agarwal acknowledged that delayed payments by buyers can hinder project delivery timelines. She added that developers must plan thoroughly and execute well to maintain project schedules.

Risks Buyers Must Not Ignore

Experts caution that buyers must carry out due diligence before signing up for such schemes. A poorly chosen project—particularly one prone to construction delays—can leave buyers making regular payments without possession or property appreciation.

Among the risks highlighted are:

• Overspending Risk: The lure of smaller payments can encourage financial overcommitment.
• Credit Score Damage: Late payments may attract penalties and hurt creditworthiness.
• Construction Uncertainty: Buyers may have to continue payments even when project completion is delayed, causing financial stress.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or real estate advice. Readers are advised to consult with certified professionals and conduct their own due diligence before making any investment or purchase decisions. Ghar.tv does not endorse or guarantee the accuracy of any third-party statements or developer claims mentioned herein.