ICICI Bank, one of the largest private banks in the country, has partnered with Amazon India to offer lucrative deal to various sellers and businesses associated with Amazon. The bank is providing an ultra-fast and completely digital overdraft (OD) facility of up to Rs 25 lakh to Micro, Small, and Medium Enterprises on the e-commerce platform. The offer is christened as ‘InstaOD’ by the bank. In addition, businesses and sellers who are not ICICI Bank’s customers can also avail the overdraft facility.
According to the press release, the ICICI Bank will provide the businesses with instant overdraft amounts of up to Rs 25 lakh based on a scorecard containing information about the creditworthiness of the business churned out with the help of advanced data analytics technology.
The credits score will be decided based on the financial profile of the seller and their transaction history on Amazon. This method of credit score to decide the worthiness of the seller for the overdraft facility is a first-in-the-industry. Moreover, the sellers and businesses have to pay the interest for the amount of OD utilized by them and not the entire amount.
The pandemic induced major blows to the economy, and the MSMEs suffered the most damage. To give a boost to their business and help them gain momentum, ICICI Bank has come up with a purely digital aid. The offer also dusts off the paper-heavy tax returns and bank statements that are required to prove creditworthiness to banks. The new offer by the bank allows businesses that are newly birthed to have a smooth start.
“We are pleased to launch the overdraft facility for amazon-registered sellers instantly and digitally. It will allow sellers to obtain up to Rs.25 lakh worth of capital with no paper needed during the transactions. At ICICI Bank, we have always believed that timely credit and smooth transactions are key factors influencing the growth of MSMEs, and this is offer is aligned to the same principle,” said Pankaj Gadgil, Head of the SME and Merchant Ecosystem.
Vikas Bansal, Director, Amazon Pay India, stated, “We are prioritising efforts to help the businesses bounce back in the post-pandemic era. We are aiming at enabling easy and transparent policies for low-cost access to credits for MSMEs.”
The ‘InstaOD’ offer comes as Amazon’s much-awaited ‘Great Indian Festival’ sale is just around the corner.