Paytm Partners with ICICI Bank For Quick Credit
Paytm Partners with ICICI Bank For Quick Credit

Digital payments platfrom Paytm has partnered with the country's largest private sector lender ICICI Bank for a short term credit product for its customers. The product named Paytm-ICICI Bank Postpaid will allow customers to get instant credit for regular use across bill payments, movie tickets and other purposes.

Available on all days in a purely digital format without any physical onboarding the product relies on the bank's analysis of the customer's digital behaviour on the basis of which his credit worthiness is determined. Based on the credit bureau check, payment behaviour and other analysis the bank will offer free credit upto 45days for customers. The initial limit will be set at Rs 10,000 which can be extended upto Rs 20,000 depending on his repayment behaviour.

Anup Bagchi, executive director ICICI Bank said “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. Once the credit limit is set up for a customer, a consolidated bill will be 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.”

As a start, 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.

Vijay Shekhar Sharma, founder of Paytm said “We believe our customers are sincere with their payments and Paytm Postpaid will play a major role in helping them pay for their daily expenses on time. This will democratize access to credit including those with less disposable income. We are happy to launch credit in a digital way to the masses in the form of Paytm Postpaid with ICICI Bank as our first partner”.

 
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