UPI has a big hand in changing the method of payment in India. With this, it has become very easy to send money from one mobile number to another mobile number or one UPI ID to another UPI ID. Now the UPI credit line can play a big role in fulfilling the requirement of the common man’s credit. This facility started with the initiative of RBI is very beneficial for customers who do not have a credit card and cannot take personal loans.
What is UPI Credit Line?
UPI Credit Line The loan facility is that a bank approves a customer. Its advantage Upi Service can be easily picked up through an app offer. In Phonepe, Google Pay, Paytm Adi includes. In traditional loans, banks credit to the customer to take money. Customers in the UPI credit line can withdraw money from the pre-printed credit limit. Then, you can return it through UPI.
How is UPI credit line different from credit card?
The UPI credit line allows you to use the money that is not yours. However, a credit card is not necessary for this. UPI credit line regulated banks offer customers.
Who can take advantage?
Currently, some big banks like HDFC Bank, ICICI Bank and Axis Bank are offering this facility. These banks offer this facility to their targette customers. For this, your credit score and record must be good. Pre-Praruved offer is seen on your bank’s app or UPI app screen. To open the credit line, users have to fill an electronic consent form. Then, he has to accept the conditions of the acceptance repayment. After approval, the credit line will appear with your UPI-Linked.
Also read: Loan Default: Can there be jail for not paying loan? Know what the law and RBI rule says
How much interest does it feel?
Since it is a short-term credit facility, the bank only charges interest on the amount you use. Banks do not take interest on the entire approved amount of the credit line. Banks decide the interest rate and loan period. However, it has a large role of your credit profile. Some banks give you interest-free timeline, while some offer the facility to pay money from EMI at large expenses.