Now Lakhs of Paytm users would enjoy the benefit of credit card without owning one. The Paytm Postpaid is providing the facility of digital credit. By using this credit you can recharge mobile, pay your bills and shop on Paytm platform wihout paying instantly. Like a credit card, you would get the credit of upto 45 days. This credit facility is provided by the ICICI Bank through the Paytm.
Features of Paytm Postpaid
The Paytm Postpaid is an unique offering and It can be a gamechanger. Because this feature has given the credit faciity to many people who could not own a credit card. Following are the main features of Paytm Postpaid.
- You can recharge mobile, DTH, Pay bills and shop using Paytm Postpaid.
- The Paytm Postpaid would generate the bill of your expenses on the first day of next month.
- You have to pay the bill of Paytm Post Paid within 15 days of bill generation.
- If you pay the bill before the due date, there would not be any charge of interest.
- But if you miss the due date, you have to pay the interest from the date of your expense. You have to also pay penalty for the default. It is just like the credit card.
- Unlike Credit cards, you are not required to enter your card details and OTP. Mere Paytm Passcode would complete the transaction.
- The Paytm postpaid facility is available only for expense on Paytm Platform.
- The credit limit can go up to 60,000. It depends upon your past purchases and payment history.
- The Paytm Postpaid user would get several offers of movie tickets and cashbacks.
- The whole process is digital and does not require and physical documents.
- The credit facility would be available within seconds of the application.
Paytm Postpaid Eligibility
Paytm Postpaid is available to almost all of its users. But you have to fulfill certain conditions.
You should have done transactions through the Paytm. A new user and low spender may not get the facility of Paytm Postpaid.
You must provide the PAN and Aadhaar number. On the basis of your PAN, the ICICI Bank would check your credit score. It is ICICI bank which decides on the credit facility.
The ICICI Banks uses your previous behavoiour and credit score to decide your eligibility and credit limit.
Paytm PostPaid and ICICI Bank
It is the ICICI Bank which provides money for your purchase and recharges. The ICICI Bank gets back its mony when you pay the billed amount. So, the ICICI Bank bears all the liability of this short term loan.
The ICICI bank gives this loan facility as it earns a commission on every purchase. In fact, when we use a credit card to pay for our purchase, the bank gets some commission. This commission is the primary income of credit card companies. Moreover, the bank would earn extra when you default on the payments. There would be a higher interest rate and penalty.
The earning formula is the same for the credit card and Paytm Postpaid. The Paytm would pay commission to ICICI Bank for every purchase. Also, ICICI Bank would earn on defaults. It is a win-win situation for both as Paytm would see higher transaction and ICICI Bank would earn a commission.
However, if a person defaults the ICICI Bank would bear the cost. There would be no liability on Paytm.
Recommended: Does Paytm Postpaid Affect Credit Score?
Paytm Postpaid Charges
The Paytm Postpaid service is free of cost. You are not required to pay anything to avail this benefit. You can enjoy the short term loan without paying anything.
But, once you default on the payment, there would be high charges.
Interest on due amount
As you know that when a bank gives you a loan it charges the interest. In this case, as well the ICICI Bank gives you a loan. It does not charge interest for some period as it gets the commission. But if you default on the payment It charges interest on the whole outstanding amount.
Also the interest is charged from the date you spend money. The interest-free period of upto 45 days lapses once you default on payment.
The ICICI Bank charges interest of 3% per month. It translates into 36% pe year. Of course this is a very high interest rate. But same interest rate is also applicable on credit cards.
Useful Post- Paytm Customer Care and Support
Like Credit cards, The Paytm Post Paid users also pay penalty for the defaulty. The amount of penalty varies on the basis of the outstanding amount.
|Due Amount||Late Fee/Month|
So this was the basic information about the Paytm Postpaid. In the next post I would tell you the process of using the Paytm Postpaid. You can also read following post on Paytm Account creation in Hindi.