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Now you can get loan through UPI in just one click, know what is UPI Credit Line and how to activate it

ECONOMIC TIMES | September 27, 2024 10:13 AM CST

The government has started the loan facility through UPI, which is being monitored by NPCI. The UPI Credit Line platform was introduced by RBI last year.

New Delhi: Many times an important payment has to be made, but it is not possible due to lack of sufficient money in the bank account. But now it is possible that even without having balance in the bank account, you can make payment through Unified Payment Interface (UPI). Actually, Reserve Bank of India introduced UPI Credit Line platform last year. Under this, any UPI user can make necessary payments through UPI despite not having money in the bank account.

Facility has been started

The central bank has also allowed giving credit line to customers through UPI, and it will be monitored by the National Payment Corporation of India. Many banks including Axis Bank, HDFC, ICICI, Indian Bank and PNB are working on this new facility. Let us tell you that this is a credit of a fixed amount which can be used whenever you need it. Anyone can activate it. In such a situation, people's dependence on credit card will decrease.

How to activate UPI Credit Line?

Step 1: To activate the UPI Credit Line facility, you can apply at the branch of the concerned bank or through the UPI app. During this, you will have to give details of your annual income in the application form, as well as submit the required documents.
Step 2: The person applying for UPI Credit Line should be at least 18 years of age. Apart from this, it is also necessary for them to have Aadhaar and PAN card.
Step 3: After this, the bank in which you have applied for the credit line will set your credit limit. After getting approval from the bank, you can link it to the UPI application.

Step 4: Once linked to UPI, you can avail the credit line facility whenever needed. Please note that you will get a limit for transactions with merchants.
Please note that for credit line transactions through UPI app, users should set a separate UPI PIN.