ICICI Bank and a digital wallet app, Paytm, collectively launch, “Paytm-ICICI Bank Postpaid” providing interest-free short-term digital loan up to Rs 20,000. With this new offer, the customer gets instant credit for various use like paying for bill payments, movie tickets, flight booking, and also for the physical goods. The bank is offering the interest-free credit of 20,000 is for maximum 45 days, after 45 days, the ICICI bank will charge a penalty of about Rs 50 and an interest rate of 3 percent per month. This offer can be availed by common customers having both Paytm and ICICI Bank account for now, and will not be available to other bank or wallet customers. The offer will shortly be available to non-ICICI Bank customers using the Paytm app.
The interest-free credit limit will range from Rs. 3,000 to Rs. 10,000 and will be extendable up to Rs. 20,000 depends on the customer’s repayment history.
Executive Director of ICICI Bank said, “This can be looked at as a private credit card, there are a lot of impulse purchases that take place…In general, when people purchase, it is by way of existing money or credit. From the credit they choose, a large of it may get paid but there would be some portfolio, which may get rolled over or delay in repayment, and that’s where we make money. That’s the game.”
Founder and CEO Paytm, Vijay Shekhar Sharma, 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. We are happy to launch credit in a digital way with ICICI Bank as our first partner.”