The Reserve Bank of India (RBI) has permitted Small Finance Banks (SFBs) to provide credit lines to their clients. This choice will offer accessible loans conveniently to disadvantaged groups such as small enterprises, micro-business owners, and people from rural and semi-urban regions. A UPI pre-approved credit line is a financial service aimed at widening access to loans for the general public. The product enables individuals and small businesses to obtain a pre-approved credit line from banks, which can be immediately utilized for transactions via the Unified Payments Interface (UPI).

The UPI credit line is a pre-approved borrowing limit associated with a user’s Unified Payments Interface (UPI) account. This function enables users to take loans from their bank account. The borrowed sum can be paid back in installments or by the conclusion of the billing cycle.

How to use the UPI credit line

1.Through the UPI credit line, users can get loans based on their transaction history and credit score.

2.Before using this facility, users can authenticate transactions with UPI PIN. After this, they can pay anywhere through QR code.

3. The UPI credit line works as a kind of digital credit card. In this, like a credit card, a limit of the amount is given to the customer to spend.

4. To take advantage of this facility, one has to first apply to the bank.

5. After getting approval from the bank, whether you have money in your account or not, you will be able to pay with UPI.