ICICI Bank today announced that it has partnered with e-commerce giant Flipkart to offer an instant and completely digital overdraft (OD) facility of up to Rs. 25 lakh to the individual sellers and businesses registered on the online marketplace.
Enabled by application programming interface (API) integration, the partnership will help sellers to avail an OD from ICICI bank instantly in a process - from application to sanction to disbursement - that is entirely digital. Customers of any bank can avail ODs from ICICI bank if they are registered as sellers with Flipkart, according to a statement shared by the leading private lender today.
ICICI Bank leverages advanced data analytics to develop a scorecard that helps in evaluating the credibility of the sellers instantly. The new credit assessment method does away with the traditional process that involves examining paper-intensive bank statements and income tax returns. This step assumes significance amid the Covid-19 pandemic.
The method helps the sellers who are 'new-to-credit' as well as existing micro, small, and medium enterprises (MSME) borrowers to unlock the value of their digital transactions and get access to instant credit.
Sellers having a current account with ICICI bank can immediately start using the OD to meet their working capital requirements. Customers of other banks can avail of the OD by opening a current account with ICICI bank digitally, after the KYC verification.
''....we understand that timely credit and ease of doing business are important factors for functioning and growth of MSME businesses. With this partnership, sellers registered with Flipkart can avail instant OD of up to Rs. 25 lakh, in a completely digital manner and start using it immediately.
The quick processing of the OD facility has been made possible by a specially developed scorecard for credit assessment of the sellers,'' said Mr. Pankaj Gadgil, Head - Self Employed Segment, SME & Merchant Ecosystem, ICICI Bank.
On Tuesday, December 7, shares of ICICI bank settled 3.46 per cent higher at Rs 734.65 apiece on the BSE.