Paytm Postpaid provides a revolving credit line of up to ₹60,000 for seamless payments without needing actual cash or a card. This credit can be leveraged to shop on online platforms, pay utility bills, mobile recharges, buy movie tickets, and more.
Paytm Postpaid offers the convenience of instant credit for shopping, bills, and payments. However, to avoid penalties, users must repay their dues diligently each month before the scheduled due date. However, since Postpaid is ultimately a credit facility, it is responsible for timely bill repayment every month before the due date.
Missing payments can attract charges, which we will understand here. So, let’s go through the billing cycle, the consequences of missing payments, and how to ensure timely bill repayment.
Paytm Postpaid Billing Cycle
Wondering how the Paytm Postpaid billing cycle works? Here’s a little about it!
- Paytm generates a consolidated bill on the 1st of every month for transactions made using Postpaid in the previous month.
- The payment due date for this bill is set as the 7th of the month.
- This means users get approximately 37 interest-free days for repayment after bill generation.
- Users can pay the bill via Paytm wallet, cards, and net banking before the due date.
Paytm Postpaid Charges After Due Date & Consequences
You should know that delaying your Paytm Postpaid charges has a lot of consequences, including a bad credit score. The consequences can result in more interest. Delaying repayments beyond the 7th can result in the following consequences:
1. Late Payment Penalty
Paying the bill after the 7th can lead to a late payment fee. Paytm may charge up to 3% of the total outstanding amount as a late penalty to discourage payment delays. The actual fee depends on factors like overdue amount, past defaults, etc.
2. Interest Charges
In addition to a late fee, a 2% monthly interest rate also becomes applicable on the reduced balance when you miss the due date. Interest accrues on a daily basis from the due date until you clear outstanding dues. This compensates Paytm for increased credit risk.
3. Account Blocking
Paytm blocks access to the Postpaid account if the bill remains unpaid even after the due date. Services get restored only after you clear outstanding amounts. This helps mitigate default risk.
4. Credit Score Impact
Paytm reports your Postpaid repayment history to credit bureaus. Defaulting or delaying bill payment can negatively impact your credit score. However, timely payments can help demonstrate creditworthiness.
How to Avoid Paytm Postpaid After Charges?
Missing your Paytm Postpaid bill payment due date can lead to late fees, interest charges, account blocking, and credit score impact. However, you can take some simple measures to avoid these penalties and make sure your payments arrive on time every month.
- Scheduling payment reminders is an effective approach to avoid forgetting and ensuring timely payment. You can set calendar alerts on your phone a few days before the due date. Or link the date with a fixed event.
- Opting for auto-pay is another great option. Enable automated bill payment deduction on the due date itself to avoid manual payment delays.
- Maintaining some balance in the Paytm wallet can also help tackle any last-minute payment issues due to bank account balance.
1) What is the late fee amount?
Up to 3% of the total outstanding bill amount, depending on factors assessed by Paytm.
2) How to pay bills after the due date?
You can pay the overdue amount through the Paytm app via cards, net banking, or wallet, plus applicable late fees.
3) When does interest get charged?
2% monthly interest accrues from the due date till you clear outstanding dues.
4) Can we partially pay the bill?
Currently, partial payments are not possible. You have to repay the total bill amount.
While Postpaid offers flexibility, timely repayment as per due date is crucial to avoid charges. Use reminders, auto-pay, and sufficient balance for timely payments. This will also help build a healthy credit profile. Having a good credit score can be of benefit in the future. Simply follow the guidance shared to manage your account well. Need more content like this? Then keep in touch with us for more updates!