UPI Credit Line Explained: How it Works and Why it Challenges Credit Cards
Business
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Moneycontrol•19-01-2026, 16:32
UPI Credit Line Explained: How it Works and Why it Challenges Credit Cards
- •UPI credit line allows payments using pre-approved credit instead of bank balance, integrated directly into your existing UPI app.
- •Users can choose between their bank account or the credit line for payments, maintaining the familiar UPI payment process.
- •It expands UPI beyond just payments, enabling small borrowings, and offers wider acceptance than credit cards, especially at small vendors.
- •Unlike credit cards, there's no physical card or separate management; everything is within the UPI app, simplifying the experience.
- •While credit cards offer rewards and longer interest-free periods, UPI credit lines fill a gap for everyday small spends and offer easier access for some.
Why It Matters: UPI credit line offers a seamless, widely accepted credit option for everyday payments, complementing rather than replacing credit cards.
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