But applying for EMIs through UPI applications can lead you to overspend. Frequent enhancement of the credit limit on a card using UPI applications can lower your credit score. We dissect what it all means for cardholders.
“A credit line scenario is like a normal personal loan. You provide certain documents. Many of you today would probably have a personal loan approved in your mobile banking application where you can go to your mobile banking application and get it enabled in a single click. No additional documentation may be required. ”
Incorporating a credit line with one’s UPI app eliminates the need to carry multiple credit cards. It will be interesting to see if the banks offer reward points and other benefits typically offered to credit card holders.
The new offerings include a credit line on UPI, UPI Lite X for offline payments and a near field communication (NFC)-enabled Tap & Pay feature, conversational payments through Hello! UPI as well as conversational bill payments with BillPay Connect.