We all know what Paytm is, but what about Paytm Postpaid? It is a service offered by Paytm in collaboration with non-banking financial companies like Aditya Birla Finance and Fullerton India Credit Company. It provides Paytm users with an instant revolving credit line that can be used to make purchases and payments across online and offline merchants.
With Postpaid, users can get a flexible credit limit between ₹500 – ₹60,000 based on eligibility criteria set by the lending partners. This instant credit can be used for purposes like mobile recharges, paying utility bills, travel ticket bookings, shopping on Paytm Mall and other online platforms, and any other payments that accept Paytm.
Here we will be talking all about Paytm Postpaid and the services it offers along with its benefits. So, let’s get started!
What Is The Eligibility Criteria for Paytm Postpaid?
Paytm Postpaid facility is available for all existing customers of Paytm. Users do not need to submit any existing credit score or employment proof to be eligible.
The eligibility criteria are primarily dependent on the risk assessment policies and credit frameworks designed by Paytm’s lending partners. The key criteria that applicants need to meet for Postpaid are:
- Must have a valid PAN card.
- Should be over 20 years of age.
- Need to complete the full KYC verification process on the Paytm App.
- Must be an Indian citizen residing in India.
If the above core eligibility requirements are met, customers can submit their Postpaid application. The final approval decision will be taken by the credit teams of the lending partners based on their proprietary scorecards and risk models.
How to Activate Paytm Postpaid?
The process to submit and activate your Postpaid application on the Paytm app involves these simple steps:
- Tap on the Postpaid icon visible on the Paytm home screen.
- Enter your PAN number, date of birth, and email ID as required.
- Read and accept the Terms and Conditions applicable.
- Provide your consent to check your credit profile and history.
- Wait for a personalized Postpaid offer to be generated based on your profile.
- Take a selfie on your phone camera for facial recognition KYC.
- Verify your identity by entering the OTP received on your Aadhaar-linked number.
- Review all the details entered and submit to activate the Postpaid service.
The quick digital application makes applying for Postpaid convenient and fast. Approval and activation can happen within minutes.
Key Benefits of Paytm Postpaid
Paytm Postpaid offers several useful benefits. Here are a few of them:
- Get instant access to credit to continue shopping or make urgent payments when your Paytm wallet balance is insufficient. This eliminates disruption of transactions due to lack of funds.
- 30 days interest-free period for making bill repayments on the credit utilized. This provides flexibility to repay comfortably by the 7th of next month.
- Removes the need to frequently top-up your Paytm wallet for ongoing spending requirements. Postpaid acts as a short-term credit line for seamless transactions.
- Helps build a positive credit profile when used responsibly by making timely repayments as per the billing cycle. Financial discipline ensures a good credit score.
- Simple and fast application process with minimal eligibility criteria. Customers can get access to credit lines quickly if approved.
- No activation, annual, or joining fees. Only applicable convenience fees depend on the type of transactions. Cost-effective credit.
- Credit limit sanctioned based on internal risk models. Customers may get higher limits over time with financial prudence.
Credit Limit & Conditions of Usage
Here are a bunch of conditions for the credit limit. If you follow the terms, then you’re good to go!
- The credit limit assigned to customers is usually between ₹500-₹6000 based on proprietary risk models used by lending partners.
- New users may get smaller limits initially, with increments in financial discipline. Significant purchases may require additional verification.
- The sanctioned credit amount can only be used to make purchases and payments within platforms and merchants accepting Paytm. It cannot be cashed out.
- Customers should ensure timely bill repayment to avoid penalties and maintain credit scores. Should not depend excessively on credit.
- Paytm reserves the right to review the credit limit or withdraw the Postpaid facility completely basis risk models and monitoring mechanisms.
Billing Cycle, Repayment & Charges
You also need to follow the proper billing cycle and charges for using Paytm Postpaid services. The terms follow:
- A consolidated bill for transactions made on Postpaid is generated on the 1st of every month.
- The due date for making Postpaid bill payments is the 7th of the same month.
- Customers can repay their bill anytime before the 7th via Paytm UPI, credit cards, debit cards, net banking, etc.
- Late payment fees between ₹0 to ₹750 may be charged if the bill is left unpaid by the due date.
- Outstanding dues can also be repaid in advance within the billing cycle as per convenience.
Impact on Credit Score
- A soft credit check is done when customers initially apply for Paytm Postpaid to assess eligibility.
- Once the Postpaid account is activated, the credit facility reflects in the individual’s credit report.
- The repayment history of Postpaid bills gets reported to credit bureaus on a monthly basis.
- Timely payment of bills every billing cycle improves the credit score gradually over time.
- Missing payments or delaying repayments beyond the due date can negatively impact the credit score.
- Multiple missed payments can drastically reduce credit scores, affecting loan/credit card eligibility.
- Besides history, the credit utilization ratio also impacts scores. Maintaining low utilization is advisable.
- Prudent use of Postpaid to make repayments on time demonstrates creditworthiness.
- Customers should check their credit report periodically to review the impact of Postpaid usage.
Charges and Fees For Using Paytm Postpaid
Here are a few things that a user should consider before availing of the Paytm Postpaid facility!
- There are no activation charges or joining fees for availing Paytm Postpaid facility.
- Annual maintenance or renewal fees are also not applicable for Postpaid accounts.
- The NBFC partners charge a nominal convenience fee ranging from 0% to 3% on certain transactions done using a Postpaid credit limit.
- The convenience fee applies to bill payments, movie tickets, flights, insurance premiums, etc.
- The late fees can range from ₹0 to ₹750 plus applicable taxes, based on the bill amount.
- If outstanding dues keep increasing every month, additional charges may be applicable as penal interest.
- Customers should avoid any late payments or interest charges by setting payment reminders.
In summary, Paytm Postpaid provides instant access to credit that can be used for shopping, payment recharges, and more. The application process is quick and easy for eligible Paytm customers. Timely bill repayment every month needs to be ensured to avoid late fees or penalties. When used wisely, Postpaid can help build a healthy credit profile over time.