UPI Credit Line explained: How it works, who can use it, and why it matters
Learn what a UPI Credit Line is, how it works, who can apply, supported banks and apps, and how to set it up for digital payments
India’s digital payment ecosystem has transformed how people transact - fast, simple, and cashless. The UPI (Unified Payments Interface) has played a significant role in this shift, facilitating billions of UPI payments each month through various mobile applications. UPI has made money movement seamless and accessible to anyone with a bank account and smartphone.
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UPI has undergone several upgrades over the past few years, including features such as UPI Lite, UPI Tap & Pay, and UPI Circle, which simplify group payments. Another addition is the UPI Credit Line - a feature that brings short-term credit directly into the ecosystem.
With ongoing changes in digital payments, new features are transforming the way people pay, borrow, and manage their finances in everyday life. In this post, we’ll discuss the basics, key features, how to set up a credit line in UPI, and what it could mean for everyday users exploring newer ways to pay.
What is a UPI Credit Line?
A UPI Credit Line is a pre-approved loan facility that lets you (user) borrow money through UPI and use it for regular digital payments. It works much like a flexible loan, where you’re given a sanctioned credit limit by your bank, and can use as much or as little as you need. Interest is charged only on the amount used, not the entire limit.
What makes the credit line in UPI useful is how seamlessly it fits into everyday payments. Just like savings accounts or debit cards are linked to UPI, you can now set up a credit line as your payment source. It’s available in both secured and unsecured variants, with some banks offering it against fixed deposits.
