UPI Now Pay Later Launched: Make Payments Without Bank Balance Using Pre-Approved Credit Line

Running out of bank balance at the checkout counter can be awkward and frustrating. To solve this everyday problem, the National Payments Corporation of India ( NPCI ) has introduced a powerful new feature called UPI Now Pay Later , also known as Pre-Approved Credit Line on UPI. This upgrade allows users to make UPI payments even when their bank account balance is zero, marking a major shift in India’s digital payments ecosystem.

What Is UPI Now Pay Later?

UPI Now Pay Later is a digital credit facility that lets users pay through UPI using a pre-approved credit limit provided by their bank. Until now, UPI transactions were strictly linked to the available bank balance. With this feature, UPI works like a virtual credit card - without the need for a physical card.

The credit limit is assigned based on your financial profile and transaction behaviour. You can make instant payments and repay the amount later, making it ideal for month-end expenses or urgent purchases.

How Pre-Approved Credit Line on UPI Works

The process behind UPI Now Pay Later is simple, quick, and completely digital:

• Your bank evaluates your credit history and CIBIL score
• Based on eligibility, a credit limit (usually ₹20,000–₹50,000 or more) is approved
• While making a UPI payment, you’ll see an option to pay via Credit Line
• Select the credit line and complete the transaction instantly
• The spent amount is deducted from your approved limit
• Repayment is done as per the billing cycle set by the bank

No paperwork, no card, and no waiting period - everything happens in real time within your UPI app.

Key Benefits of UPI Now Pay Later

The launch of UPI Now Pay Later brings multiple advantages for everyday users:

• No balance dependency: Pay even when your savings account is empty
• Universal acceptance: Works on all UPI QR codes, including small merchants
• Emergency-ready: Ideal for urgent bills, travel, or medical needs
• Fully digital onboarding: Quick activation without physical documents
• Improves credit score: Timely repayments help boost your CIBIL rating
• Flexible repayments: Spend now and pay later with ease

This feature bridges the gap between UPI payments and traditional credit cards.

Who Is Eligible for UPI Credit Line Facility?

To use UPI Now Pay Later, users must meet certain criteria set by NPCI and partner banks:

• Must be an Indian citizen
• Minimum age of 18 years
• Aadhaar and PAN card linked to an active mobile number
• Active account with a UPI-enabled bank offering a credit line
• CIBIL score of 750 or above

Final approval and credit limit depend on your repayment capacity and banking history.

Why UPI Now Pay Later Is a Game Changer

By introducing a pre-approved credit line on UPI, NPCI has transformed UPI from a debit-only system into a powerful credit-enabled payment tool. It reduces dependence on credit cards, increases payment flexibility, and strengthens financial inclusion - all within a familiar UPI interface.

As digital payments continue to grow, UPI Now Pay Later is set to redefine how India pays, spends, and manages short-term credit - smartly and seamlessly.