Paytm this week announced the launch of Postpaid Mini, a need and consumption based credit for users to help them manage their household finances. This product is an extension of its Buy Now, Pay Later service for users without a credit score. “The idea behind the launch of this product is to empower more people to experience credit with smaller loans and learn tax discipline,” said Bhavesh Gupta, CEO of Paytm Lending at Financial Express Online.
He added: “Through Postpaid, we are also making sincere attempts to help stimulate consumption in the economy. Our new Postpaid Mini service helps users manage their cash flow by clearing their bills or payments on time. Postpaid Mini will offer loans ranging from Rs 250 to Rs 1000 to users to pay for their monthly expenses, including mobile and DTH top-ups, gas cylinder reservations, electricity and water bills, among others.
With Postpaid Mini, users will have to repay the loan within 30 days at 0% interest. While there is no annual fee or activation fee, there is a convenience fee for each transaction. The company previously launched Paytm Postpaid instant credit of up to Rs 60,000. This service was launched in partnership with Aditya Birla Finance as a lending partner. Through Paytm Postpaid, users can pay at online and offline merchant stores in over 550 cities in India.