UPI Now Pay later lets you pay first with zero bank balance
UPI Now Pay Later lets users make UPI payments via pre-approved bank credit when balance is low, offering instant digital credit with flexible repayment.
UPI Now Pay later lets you pay first with zero bank balance
The UPI Now Pay Later feature is especially beneficial for users who need to make payments unexpectedly or who are unable to pay due to a limited balance.
UPI Now Pay Later is a digital credit facility under which banks provide customers with a pre-approved credit limit.
If you have ever faced the problem of UPI payments failing due to low bank balance, then there is good news for you. The National Payments Corporation of India (NPCI) has launched a new and very useful feature for UPI users, ‘UPI Now Pay Later’, also known as a pre-approved credit line through UPI. After the introduction of this facility, UPI will no longer be limited to the balance available in your bank account. When needed, you can use the pre-approved credit from the bank to make instant payments.
What is UPI Now Pay Later?
It is a digital credit facility under which banks provide customers with a pre-approved credit limit. Using this limit, users can make instant payments via UPI and pay the amount later within a stipulated timeframe. This feature acts like short-term credit and is especially helpful when there isn't enough balance in the account.
How it works
According to Hero FinCorp, the bank or lender sets a specific credit limit based on the user's profile and credit score, for example, ₹20,000 to ₹50,000. When making a payment via UPI, the user can select the credit line instead of their bank account. This completes the payment instantly, and the amount is adjusted against the credit limit. A bill for the used amount is generated at the end of the billing cycle, which needs to be paid according to the agreed terms.
Key Benefits
Instant credit facility: Uninterrupted payments even with low balance
Wide acceptance: Usable wherever UPI is accepted
Flexible payment option: Convenience of paying later
Completely digital process: Easy and fast onboarding without any paperwork
Eligibility Criteria
You must be 18 years of age or older and an Indian citizen. Required documents include a PAN card and Aadhaar card linked to your mobile number. You must also have an active account with a UPI-enabled bank. Additionally, your CIBIL score should be 750 or higher. This initiative by NPCI is a significant step towards making digital payments more accessible, flexible, and consumer-friendly.
