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India is continuously setting new records in the field of digital payments. In this series, now such a feature has emerged, which allows making UPI payment even if there is no balance in the bank account. Crores of users are expected to benefit from this technological innovation.

On the initiative of National Payments Corporation of India (NPCI), select UPI apps have now started offering “UPI Credit Line” facility. Under this, consumers will get the option to make payment not through bank account but through credit line. This facility can be availed even when the user has zero balance in his account.

What is UPI Credit Line?

UPI credit line is actually a type of short-term loan, which is given to customers by banks or fintech companies. This credit facility is linked to the UPI platform, so consumers can use it like normal UPI payments.

While using this facility, the customer has to select whether he wants to make the payment from the credit line. For this, an additional option appears in the UPI app. After payment, this amount has to be repaid within the stipulated time, just like a credit card is paid.

In which apps is the facility available?

At present this facility is available only on some special apps like Paytm, PhonePe, BharatPe and mobile apps of some selected banks. Leading banks like HDFC Bank, ICICI Bank, Axis Bank and SBI are working on the pilot project of this feature. Its scope will be further expanded in the coming months.

What will be the benefit?

Necessary payments can be made even if there is no balance in the bank account.

Facility of quick payment in case of emergency.

Big support for small shopkeepers and students.

Payment facilities like credit cards, but with a simpler interface.

Why is this facility special?

There are millions of consumers in India who do not have credit cards or whose bank balance is limited. UPI Credit Line offers a digital financial solution to these people, allowing them to conduct digital transactions even with limited resources.

This feature also strengthens the vision of ‘Digital India’ and ‘Cashless Economy’ of the Government of India.

things to note

This facility is available for limited amounts (e.g. ₹5,000–₹50,000).

Interest or late fees may apply if payment is not made on time.

May impact credit score, so use with caution.

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