Detailed credit limits for India's Unified Payment System UPI www.deekpay.com

Many people in India do not have credit cards and are unable to make purchases immediately and pay for them once the bill is generated. The Government of India realises that increased purchasing power at the grassroots level is also good for the functioning of the economy. Today most people within India useUPI to carry out daily transactions.The credit line on UPI has been introduced to enable these users to carry out even if they do not have a balance in their bank account. UPI Trading.

What is a line of credit

A line of credit is a credit facility provided by banks and other financial institutions to individuals, businesses and governments. It enables these entities to use the credit facility to draw funds according to their business needs.

Line of credit borrowers can use any amount from the total approved line of credit. This is a flexible form of lending, with interest paid only on the amount utilised.

What is a line of credit on UPI

A line of credit on UPI is a pre-approved line of credit that provides seamless UPI paymentsSolution. This is a pre-approved line of credit that is directly linked to the borrower's UPI ID RELATED. This is another type of secured bank offering through UPI.digital paymentSolution.

Borrowers can associate a line of credit with funding accounts on their UPI, such as savings, overdrafts, prepaid wallets, and credit cards. A line of credit associated with an applicant's UPI can be used as an alternative to a credit card.

There are two types of credit lines available on UPI, offered by leading private and public sector banks.

Secured time deposit line of credit on UPI. Unsecured variant of line of credit on UPI.

Recommended Reading:What is UPI?

Features of the UPI Line of Credit

FeaturesMeaningPre-approved credit limitUsers can withdraw the required funds from the total limit allotted and pay interest only on the utilised amount. Credit limit detailsWith the UPI app, users can get a comprehensive view of your credit limit status, utilised credit limit and existing EMIs.Instant accessUsers can get instant access to credit and make seamless payments and transactions without having to pay any additional fees and charges. Flexible Repayment Borrowers can choose to repay the utilised credit limit in full or in instalments, depending on their financial status, with an automatic payment option. Secure Identity Verification Users can use a dedicated UPI PIN Verification of Transactions. Unified Linking Users can browse the credit line account of the issuing bank based on the registered mobile number and link it to any UPI application. Transaction Limits Minimum Limit - Rs. 25,000 Maximum Limit - Rs. 5 lakhs Variety of Transaction Types Borrowers can only make payments to merchants using QR codes and e-commerce merchants using UPI Line of Credit. Dispute Resolution Disputes can be easily resolved through ODR (UPI Help) on the UPI app.

Eligibility to apply for a line of credit on UPI

Eligibility for a UPI line of credit depends on the type of line of credit offered; and varies by lender:

Basic eligibility criteria Age: At least 18 years old at the time of loan application. The line of credit will be issued by the bank where the applicant has a bank account with an activated UPI. Citizen of India and has not previously defaulted with any financial institution. The applicant has no criminal record.

After applying for a line of credit, the bank will assess creditworthiness based on the individual's credit report.

Note: Borrowers can access their UPI line of credit through the same app they use to make payments and transfers.

How the UPI line of credit works

A UPI line of credit functions similarly to a line of credit offered by a financial institution as a credit product.

First, the user must apply for a UPI line of credit through the UPI app. The bank from which the user operates his account for UPI transfers will ask for the credit report of the individual from an organisation (may be CIBIL). The bank may approve or reject the UPI credit limit application based on the credit report of the individual. If approved, the bank will allot a specific amount of credit to the user which can be utilised for UPI transactions. A statement containing the transaction, amount due and due date is generated every month. Once the user makes a repayment, the individual's total credit limit is restored and can be used for the next payment. The user must select UPI Credit as the payment method at the time of payment.

Apps that support UPI lines of credit

BHIM CRED Google Pay Lazypay Mobikwik Navi Paytm PayZapp PhonePe Tata Neu

Banks that support UPI lines of credit

Axis Bank HDFC Bank ICICI Bank Kotak Mahindra Bank Punjab National Bank (PNB) State Bank of India (SBI) Indian Bank Karnataka Bank Federal Bank

Limitations on UPI credit limits

Here are some limitations regarding the UPI Circle Line:

Credits can only be used for Merchant UPI ID payments and cannot be used for payments for any peer-to-peer (P2P) UPI transactions. Discounts and offers on UPI credits are few and far between unlike credit cards, which can offer up to 5% in instant discounts on purchases. Currently, not all banks offer UPI credits. Additionally, many UPI apps still have not started offering this feature on their platforms. There are daily and per-transaction limits for credit lines on UPI. In the case of credit cards, users can set transaction limits based on available credit.

Things to remember when activating a line of credit on UPI

Ensure that the personal loan bank supports the line of credit feature on UPI. Make sure outgoing text messaging is turned on when activating a line of credit on UPI. Use the same mobile phone number when using one or more UPIs by activating credits. For prepaid top-up packs without outgoing SMS service, contact your operator. Debit cards should be associated with a credit limit. Check with your bank to see if they support pre-approved lines of credit. In case of frequent non-payment of dues, the provider can revoke your credit line approval without providing any information.

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