If you are a Paytm customer, you can now have access to instant interest-free short-term digital credit by ICICI Bank. Paytm, country's largest digital wallet, has tied up with private sector lender ICICI Bank to offer its customers up to Rs 20,000 interest free credit for the first time for everyday uses ranging from movies to bill payments to flights and white goods. The amount would remain interest free for a period of 45 days. Thereafter, an interest of 3 per cent will be levied.
Initially, however, the offer would be available for select customers of the bank using the Paytm app. But will shortly be made available to non-ICICI Bank customers as well.
The new Paytm-ICICI Bank Postpaid offer is a digital credit account with instant activation. It requires no hassles of documentation or branch visit, while activation is fully online. Moreover, it doesn't involve any joining or hidden administration fees.
Available round the clock, it is based on a new Big Data based algorithm by ICICI Bank for real-time credit assessment of customers. The algorithm uses an intelligent combination of financial and digital behaviour of the customer including credit bureau check, purchase patterns, frequency of purchase to ascertain the credit - worthiness of a customer within a few seconds.
Also, Paytm-ICICI Bank Postpaid will also offer a quick checkout to customers with the Paytm Passcode.
Here's how the offer works: After the credit is availed, 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 pay using Paytm Wallet, debit card or internet banking of any bank.
"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 democratise access to credit including those with less disposable income," said founder and CEO - Paytm, Vijay Shekhar Sharma.