The RBI has announced that now users would be able to use their pre-sanctioned credit lines through UPI.
This would allow both businesses and individuals to use their credit lines without a card or POS machine.
To use credit lines through UPI, one would need to submit an application to their bank linked with their UPI ID.
The bank would then check the eligibility of the user for a credit line and asses their creditworthiness. The paperwork involved in the process may vary from one bank to another.
If the user is eligible and creditworthy, the bank would approve the application and sanction a credit line with a specified limit.
With a pre-sanctioned credit line, users can then use it through UPI while making payments. The repayment mechanism and the interest rates on credit lines would vary from bank to bank.