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 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
FAQs
How can we use UPI pay later?
Why use UPI pay later if we have a credit card?
How will UPI pay later be different from other types of loans?
