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Credit Line From UPI: Many times it happens that we borrow money from a nearby shop. Even to borrow money, we have to please the shopkeeper. But, this problem is also going to be solved. Soon, National Payment Corporation of India (NPCI) is going to provide a big facility to the users using UPI. After the launch of the new facility, your UPI account will work as a credit card. This means that even if there is no money in the account, you will be able to make payments easily.

Know about the new feature

Actually, NPCI says that UPI account will work like a credit card. Every customer will get a credit line according to his CIBIL score. This credit can be used only with merchants. However, interest will also have to be paid for this payment. NPCI has currently talked to many private and government banks which have also agreed for this. So far, ICICI Bank, PNB, Indian Bank and Axis Bank have agreed for this facility.

Shopkeepers will benefit

This facility of NPCI will not only benefit the customers but also the shopkeepers. Currently, shopkeepers have to pay a charge of about 2 percent for making payments of more than 2 thousand. However, after getting a credit line in UPI, such fees will not have to be paid. However, when you make payment through credit card, there is no interest. Whereas in UPI credit line, you will have to pay interest as well.

How will the interest be charged

You will not have to pay any interest on this facility available in UPI. You will have to pay interest only if you use it. Under this facility, you will have to pay only the amount of funds you use. Overall, this facility will work like an overdraft facility. For example, if you have got a credit line of 20 thousand and you have used only 10 thousand rupees of the credit line, then you will have to pay interest only on 10 thousand rupees.