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Have you ever been shopping and suddenly realized you have insufficient funds in your bank account when it's time to pay? To save you from such embarrassing situations, NPCI (National Payments Corporation of India) has introduced a revolutionary feature called UPI Now Pay Later or 'Pre-Approved Credit Line on UPI'. Now, your UPI payments won't be limited to your bank balance anymore.

Even if you don't have a single rupee in your account, you can still make instant payments using the credit limit provided by your bank. This feature is going to be a major game-changer in the world of digital payments as it frees you from the hassle of credit cards and provides borrowing facilities directly through your mobile app.

What is UPI Now Pay Later?
In simple terms, UPI Now Pay Later is a digital credit service where banks set a specific credit limit based on their customers' profiles and transaction history. Until now, having money in your savings account was mandatory to use UPI.

But with this new feature, you can make instant payments using your bank's credit line and repay the money to the bank after a certain period. It works exactly like a credit card, the only difference being that you don't need to carry any physical card in your pocket. This is perfect for situations when your salary runs out at the end of the month but essential expenses are still pending.

How does this feature work?
To avail of this facility, the bank first checks your credit history and CIBIL score. If your banking record is good, the bank activates a limit ranging from ₹20,000 to ₹50,000 or more in your app. When you scan a merchant's QR code, the app will show you the option of 'Credit Line' along with your bank account.

As soon as you select the credit line, the payment will be processed instantly, and that amount will be deducted from your limit. At the end of the month or when your billing cycle is complete, you will receive a bill that you can pay according to the agreed terms. This entire process happens in real-time and requires no paperwork.

Amazing Benefits of UPI Credit Line
This feature not only enhances convenience but also acts as a strong shield during financial emergencies. The biggest advantage is that a low bank balance will no longer hinder your purchases or bill payments. This feature also works where regular credit cards are not accepted, as it can be used on any UPI QR code.

Being a completely digital process, it is very easy and quick to sign up. Additionally, paying your bills on time improves your credit score, making it easier to get larger loans in the future. It's a flexible payment option that gives you the freedom to spend now and pay later.

Who can avail this facility?
NPCI has set certain criteria for this feature that must be met. The first condition is that the applicant must be an Indian citizen and at least 18 years old. For documentation, you must have an Aadhaar card and PAN card linked to an active mobile number.

Your account must be with a bank that is UPI-enabled and offers the credit line facility. Most importantly, to avail this facility, your CIBIL score must be 750 or higher. Banks approve this credit limit based on your repayment capacity and past transactions.