Credit line on UPI: How to use ICICI Bank and PhonePe’s instant credit line on UPI

ICICI Bank and PhonePe have collaborated to provide instant credit on UPI to its pre-approved customers using the digital payments company's app. This collaboration allows ICICI Bank's numerous pre-approved customers to instantly activate a short-term credit line on the PhonePe app and utilize it for UPI transactions in a smooth and secure way. “The Bank offers credit line on UPI for up to ?2 lakh with a repayment period of 45 days,” said ICICI Bank in a press release issued on October 8, 2024.

During the festive season, this facility has been introduced to provide customers with the ability to buy expensive items such as electronics, make travel and hotel reservations, pay bills, and more.

Niraj Tralshawala, Product Head- Payment Solutions, ICICI Bank said, “At the anvil of the festive season, the pre-approved customers of ICICI Bank can activate the credit line instantly to make payments for their festive shopping needs on PhonePe. Aimed at providing seamless digital credit, this offering is likely to play an important role in the personal banking experience of our customers.”

Deep Agrawal, Head of Payments at PhonePe said, “This partnership will enable customers to avail flexible short-term credit through a fully digital user experience from within the PhonePe app instantly.”

This line of credit can be used with different UPI payment apps, allowing customers to make transactions using any UPI payment app.

·Login to your PhonePe app
·Click on the credit activation banner shown on the app
·Check the product features, charges and proceed for activation
·Complete all authentication steps
·Once the credit line has been approved, the customer can link it UPI, set up a UPI Pin and use it for UPI transactions.

“Pre-sanctioned Credit Line at Banks through UPI” is an innovative financial offering designed to revolutionize the lending landscape. This product empowers individuals and businesses to access pre-sanctioned credit lines from banks. It facilitates the availability of low-ticket, high-volume retail loans, fostering economic growth and enhancing financial inclusion. Leveraging advanced technologies such as data analytics and artificial intelligence, banks can identify credit line opportunities for customers and merchants engaged in significant UPI-based digital payments. Since the customer is going to use UPI in which customer is always connected, available real-time the banks can start from the low-ticket credit lines and go higher up based on consumer behaviour and repayment patterns,” as per the National Payments Corporation of India (NPCI) website.