Outlook Money
UPI Credit Line is a new feature that enables users to access short-term credit through their UPI-enabled bank accounts. This service allows for borrowing a certain amount which can then be used via UPI for purchases just like a regular account.
This service enables both individuals and businesses to access pre-approved credit lines from banks. Traditionally, UPI only supported payments directly from bank accounts via debit cards or prepaid wallets. However, with this new feature, users can link bank-approved credit lines to their UPI apps.
1. Check Eligibility: The first step to access this service is to check whether one is eligible or not. For this, users can apply via participating banks. The Bank will then check credentials and set the credit limit applicable.
When the bank approves this service, the credit line is linked to the respective UPI account. It will appear as a payment option alongside bank accounts or wallets within the app.
UPI users can get a 45-day rolling credit line. This is similar to a credit card or another type of credit line. The process for a Credit Line on UPI would give one quick access to credit when needed.
One should keep in mind setting UPI PIN for credit line and setting UPI AutoPay service.
Interest rates and offers on the UPI credit line will be set by the participating banks independently based on their own criteria.