BusinessDigital Money

UPI Now PayLater: How to Apply, Credit Limit

Credit options have been diversified now. With payment options in India taking a giant leap, credit options have also evolved significantly. Today, credit cards are not only the sole option to get credit. The concept of buy now pay later has taken over the financial world. Now, the Reserve Bank of India has approved the credit options through the UPI network.

UPI Now PayLater How to Apply, Credit Limit

UPI Now PayLater Coming Soon

The credit through UPI is called UPI Now PayLater by major banks. This facility will allow a user to spend money from a pre-sanctioned credit limit and repay the amount later.

Out of the majority of lenders, HDFC and ICICI banks have already adopted the UPI credit system and sanctioned credit lines, called HDFC UPI Now PayLater and ICICI PayLater.

Pre-sanctioned credit lines essentially involve pre-approved credit, which banks grant to customers based on data analytics conducted on both internal deposit customers and potentially non-customers whose creditworthiness has been assessed by the bank,” CNBC TV18 mentioned.

Also read:

How to Reverse UPI Transaction to Get Your Money Back on PhonePe, Paytm, Gpay


How can we use UPI pay later?

UPI Pay Later services will be offered to you either by the bank, or you can apply for it yourself and get it if you are eligible. Once the registration has been done, a credit limit will be allotted to you to utilize on spending through apps like GPay, PhonePe, Paytm, etc.

Why use UPI pay later if we have a credit card?

A person can get credit via a multitude of financial products like loan facilities, credit cards, etc. However, the process of utilizing the credit limit via these channels is very lengthy. UPI Pay Later will be a game changer in the credit world. It will be the fastest and easiest credit option, eradicating the need for carrying physical credit cards.

How will UPI pay later be different from other types of loans?

The interest rate on pay later will only be applicable on the total funds you utilize out of your entire credit limit. In another type of loan, the interest rate is levied on the total limit.

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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