ICICI Bank this week announced the launch of an instant digital credit facility to enable customers to buy small-ticket items immediately in a completely digital and paperless manner. Named PayLater by ICICI Bank, the facility has been designed on a selective basis method using self-developed algorithms with the help of data analytics. According to a statement by the bank, this facility leverages upon the technology unveiled in BHIM UPI 2.0 to extend digital credit to customers for making payments using UPI.

ICICI Bank, who was one of the was the first banks to enter the instant small-ticket digital lending segment by partnering with a large fintech firm, is now extending that programme leveraging upon the UPI 2.0 railroads.

Available 24X7 on all days, ‘PayLater’ will use ICICI Bank’s new big bata-based algorithm for undertaking credit assessment of customers. The algorithm uses an intelligent combination of parameters including the Credit Bureau check, balance patterns, vintage with the Bank, among others to ascertain the creditworthiness of a customer. Based on the eligibility of the customer, the Bank offers up to 45 days interest-free credit limit. It ranges from ₹5,000 to ₹20,000 based on eligibility of the customer. Once the credit limit is set up for a customer, a consolidated bill is generated on the first day of the subsequent month, which has to be paid by the 15th day of the same month. Customers can seamlessly repay their dues by setting up an auto debit facility with their account or by simply initiating a transfer through their internet banking account.

The PayLater facility is targeted at the millennials who want everything digitally and instantaneously, including credit. An invite-only facility, it is instantly available to pre-approved and qualified customers up to ₹20,000. Customers can use it immediately to shop online on e-commerce sites, entertainment, travel, accommodation bookings among others. Customers can also make payments at physical stores through PayLater using the UPI platform.

Talking about the new proposition, B Madhivanan, Group Executive and Chief Technology and Digital Officer at ICICI Bank said in a statement, “ICICI Bank has a rich legacy of offering path-breaking products and services that have revolutionised the consumer loan business in the country. We are witnessing two distinct new trends: One, many customers, who have not taken any credit so far and therefore do not have a credit history, are looking for short-term credit. Two, millions of young Indians are now buying products online. We have combined these two insights to bring out a novel proposition of giving short-term digital credit, instantly. India’s digital lending market is estimated to offer a $1 trillion opportunity over the next five years.”