The new credit assessment method offers convenience to the sellers as it does away with the paper-intensive bank statements or income tax returns for assessing credit worthiness.
MUMBAI:ICICI Bankhas announced that it has partnered with Amazon India to offer overdraft (OD) facility upto Rs 25 lakh to individual sellers and small businesses registered on the e-commerce company’s online marketplace, instantaneously and digitally. Driven by API integration, the partnership enables sellers to avail an OD from the Bank in a process, from application to sanction to disbursement, that is digital. Customers of other banks can avail the facility from ICICI Bank, if they are registered as sellers with amazon.in.
ICICI Bank has developed this new facility that functions on the back of an industry-first scorecard to evaluate credit worthiness of sellers based on their financial profile including Credit Bureau scores.
The new credit assessment method offers convenience to the sellers as it does away with the paper-intensive bank statements or income tax returns for assessing credit worthiness. Further, it empowers small businesses and individual sellers who are ‘new-to-credit’ and ‘existing MSME borrowers’ to unlock the value of their digital transactions and get access to instant credit.
In a statement, Pankaj Gadgil, Head- Self Employed Segment, SME & Merchant Ecosystem, ICICI Bank said, “This process will help the sellers, who may otherwise not get access to adequate credit when assessed in the traditional way of using only balance sheets, bank statements and tax returns. This new proposition resonates our effort in developing innovations for MSME customers and will empower them with new avenues of business expansion.”
Benefits of InstaOD:
- Online loan application: Sellers registered on amazon.in can apply for the OD instantly online through amazon.in.
- Easy process: The Bank evaluates sellers making the loan approval process easy and quick. This is an improvement over the typical process which demands sellers to go through the tedious paper-intensive process of submitting income tax returns, bank statements and GST returns.
- Instant sanction and disbursal: The approved OD amount is instantly sanctioned and disbursed into the seller’s current account
- Pay for what you use: Sellers only need to pay interest on the amount of OD utilised by them
- Auto-renewal facility: The OD is renewable on an annual basis, depending on the repayment track records of the seller
“We are prioritizing our efforts to help sellers on amazon.in bounce back from the disruption owing to COVID-19. We want to enable easy access to credit for sellers with transparent policies and at low costs” said Vikas Bansal, Director – Amazon Pay India, in a statement.