NPCI's New Feature: What Is Credit Line On UPI?

The National Payments Corporation of India (NPCI) has launched a new feature called credit line on UPI allowing users to access credit directly through UPI.

What Is Credit Line On UPI?

Using credit line on Unified Payments Interface (UPI) users can access a pre-sanctioned credit line from participating banks through UPI without a separate credit card or loan application.

This feature works just like any other UPI payment, where one can scan the QR code, enter the amount, and choose to pay from the credit card which has been linked instead of a savings account.

This repayment can either be structured as EMIs or as an overdraft option.

Further, interest rates are also lower as compared to credit cards, making it a more affordable short-term borrowing option.

Product Features

The following are the features of "Credit Line on UPI":

• Seamless Linking: Users can discover credit line and link it to UPI via their registered mobile number.
• Secure Authentication: Users can also authenticate transactions with a dedicated UPI PIN for Credit Line on UPI, enhancing security as well as preventing unauthorized access.
• Transaction Variety: Users can pay merchants exclusively using QR codes or e-commerce platforms using the Credit Line on UPI.
• Credit Line Details: Gain comprehensive insights into Credit Line status, utilized credit limit, and existing EMI details directly within the UPI app.
• Dispute Resolution: Resolve disputes conveniently through the ODR (UPI Help) available on UPI apps, ensuring a transparent and user-friendly experience.
• Repayment Methods: Understand and utilize repayment methods effectively, including inward payments to the specific UPI ID for Credit Line repayments and e-mandates (AutoPay), where applicable.

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