Paytm partners ICICI Bank to launch short-term credit product

Paytm has partnered ICICI Bank to launch 'Paytm-ICICI Bank Postpaid’, which is an interest-free, short-term digital credit product. This instant credit could be used for bill payments, movie tickets, flight and other purposes.

Paytm-ICICI Bank Postpaid is a digital credit account with instant activation, which means no hassles of documentation or branch visit, while activation is fully online. There is no transaction, joining or hidden administration fees either.

"We have seen that many customers—who are new-to-credit and therefore, do not have a credit history-- are looking for short term credit and millions of young Indians are now buying products online. We have combined these two insights to bring out a novel proposition of giving short term credit to people, completely online and instantly. In this endeavour, we have leveraged upon Big Data to develop a new algorithm that instantly assesses the credit worthiness of customers using a combination of financial and digital parameters to sanction the credit line instantly," said Anup Bagchi, executive director ICICI Bank.

Customers will be offered digital credit based on their credit-score and can be offered up to 45 days interest-free credit limit. The credit limit will range from Rs 3,000 to Rs 10,000 and will be extendable up to Rs 20,000 based on the repayment history of the customer. Paytm-ICICI Bank Postpaid will have a quick checkout option for customers with the Paytm Passcode.

To start with, Paytm-ICICI Bank Postpaid will offer the credit limit to select customers of the bank using the Paytm app. It will shortly be available to non-ICICI Bank customers using the Paytm app. Once the credit limit is set up for a customer, a consolidated bill is generated on the first day of the next month, which has to be paid by the 15th day of the same month. Customers can use their Paytm Wallet, debit card or internet banking of any bank for an easy repayment of their dues.