Digital wallet firm Paytm and ICICI Bank have partnered to launch “Paytm-ICICI Bank Postpaid” that will offer interest-free short-term digital credit to their customers. ICICI Bank on Thursday said it is the country’s first tie-up between a Scheduled Commercial Bank and a payments platform to offer digital credit.
“The Paytm-ICICI Bank Postpaid service enables lakhs of new-to-credit customers to get instant digital credit for everyday use – cases ranging from movies to bill payments to flights to physical goods,” the bank said in a statement.
Under this offer, users can get digital credit account with instant activation without documentation or branch visit. They can avail digital loans up to Rs 20,000 for a maximum of 45 days. However, the credit limit will range from Rs 3,000 to Rs 10,000 and can only be extended up to Rs 20,000 based on the repayment history of the customer.
The offer will first be available for select customers of ICICI Bank using Paytm. Later, it will be available to non-ICICI Bank customers using the application.
“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,” ICICI Bank’s Executive Director Anup Bagchi told The Economic Times. “We have combined these two insights to bring out a novel proposition of giving short term credit to people, completely online and instantly.”