UPI has completely changed the way people make payments in India.
From small roadside tea stalls to large shopping malls, UPI is now accepted almost everywhere.
With just a bank account and an internet connection, money can be sent or received within seconds, without any paperwork or hassle.
Most users believe that a minimum bank balance is required to make UPI payments. But that is no longer true.
Even if your account has zero balance, you can still pay using UPI, thanks to a special feature offered by banks.
How UPI Payments Work Without Account Balance
UPI apps now provide a feature called Credit Line.
This works in a way similar to a credit card. When you make a payment using this option, the bank temporarily lends you the money.
You can scan a QR code or enter a UPI PIN just like a normal transaction.
The payment goes through even if there is no money in your savings account.
The amount is deducted from a pre-approved credit limit and must be repaid to the bank within a fixed time period.
Banks Offering UPI Credit Line Facility
Several major banks in India are already offering this credit line feature through UPI apps.
Private banks such as Axis Bank, HDFC Bank, ICICI Bank, and Indian Bank provide this service.
Among public sector banks, Punjab National Bank also offers UPI credit lines.
Since this facility is a form of short-term loan, banks charge interest on the amount used.
In many cases, interest starts applying from the day of the transaction. Some banks calculate the interest at the end of the month.
How to Activate the Credit Line on UPI
Activating the credit line feature is a simple process.
Users need to open their UPI app and look for the credit line option. After selecting the bank, identity verification is done using Aadhaar.
Once verification is complete, a UPI PIN is set for the credit line.
After activation, users can choose the credit line instead of their savings account while making payments.
Credit Limit and Who Can Benefit
The credit limit for UPI payments generally ranges between ₹2,000 and ₹60,000, depending on the bank and the user’s eligibility.
This facility is especially useful for people who face sudden expenses and do not have enough balance in their account.
It allows quick payments without delay, while giving time to repay the amount later.
