ICICI bank in collaboration with digital payments platform, Paytm launched a new credit facility called ‘Paytm-ICICI Bank Postpaid’.
Introduced with a tagline, ‘Buy today, pay next month’, the new facility is an instant, short-term, digital credit facility available for select ICICI customers using the Paytm app.
The credit facility is developed with a new Big Data-based algorithm which provides real-time credit assessment of the customer. The algorithm determines the credit-worthiness of the existing ICICI customer and Paytm user by considering his/her financial and digital purchase behaviour including online shopping behaviour, purchase frequency, credit history and credit reports.
Based on the assessment, ICICI decides the eligibility of the customer, credit limit and duration of interest-free period. Initially, a credit limit ranging from Rs.3000 to Rs.10,000 will be offered and based on the customer’s repayment history it can be extended up to Rs.20,000.
An interest-free period of up to 45 days will be provided, following which the credit needs to be repaid. A consolidated invoice will be generated on 1st of every month and the bill has to be paid by 15th of the same month.
Failing to repay the amount on or before due date will attract a penalty fee of Rs.50 along with a 3% monthly interest on the outstanding due. If the bill is not paid on time, the account will be blocked and the same will be reported to CIBIL and other credit bureaus.
The facility is currently available only to select ICICI bank customers and will be introduced to non-ICICI bank customers in future.
The partnership is first of its kind collaboration between a payments platform and a scheduled commercial bank, said the press release.
Mr. Anup Bagchi, Executive Director of ICICI Bank mentioned that the concept of providing short-term credit instantly has been designed to cater people who are new to credit and to young people who are shopping online. The credit facility helps customers to meet their everyday expenses such as booking movie tickets, travel tickets, bill payments, recharges and the like, he added.
How to find Paytm-ICICI Bank Postpaid in Paytm app?
Existing Paytm users who have an active ICICI bank account can use the credit facility.
You can find the feature listed in the Paytm app – Profile Section.
To set-up the account, you need to select the Paytm Postpaid option from the profile section, enter details such as Aadhaar number, PAN number, email, etc., and click submit application.
If you are eligible for the credit facility, a new page with the available credit will be displayed.
You can use the amount while shopping using your Paytm app. Paytm Postpaid option along with the available balance will be displayed as one of the options on the bill payment page. You can select the same to shop using your available credit.
More Paytm news here.