What is Credit on UPI and How to Enable It on Bajaj Pay UPI

By
Daily Excelsior
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Unified Payments Interface (UPI) has revolutionised the way we handle transactions in India. It is a fast, secure, and seamless way to transfer money between bank accounts using a mobile device. One of the latest advancements in this ecosystem is the ability to use credit on UPI, enabling users to make purchases on credit directly through their UPI ID. This feature offers flexibility in managing expenses and enhances purchasing power. Users can link their pre-approved credit line or credit card to the Bajaj Pay UPI ID, allowing them to make payments with borrowed funds while enjoying the convenience and security of UPI-based transactions.

What is Credit on UPI?

Credit on UPI allows users to link a credit line, such as a credit card or an overdraft facility, directly to their UPI ID. This means you can make transactions even if your bank account balance is low, by leveraging the credit facility linked to your UPI. It extends the convenience of UPI by integrating credit seamlessly into the transaction process, allowing for greater financial flexibility.

How to enable Credit on UPI

To start using credit on UPI, you will need to link a credit facility to your UPI ID. Here is how you can do it:

  1. Check eligibility: Ensure that your bank or UPI service provider supports linking credit lines to UPI. Not all banks offer this feature yet.
  2. Choose a credit option:
    • Credit card: Link a credit card to your UPI ID.
    • Overdraft facility: Some banks offer an overdraft facility that can be linked to UPI.
    • Bajaj Pay credit: Bajaj Finance offers credit that can be linked to your UPI ID through the Bajaj Pay app.
  3. Open your UPI App: Launch your UPI-enabled app (e.g., Google Pay, PhonePe, Paytm, or Bajaj Pay).
  4. Navigate to payment options:
    • Find the section where you can add bank accounts or payment options.
    • Look for an option to add a credit card or link an overdraft account.
  5. Link credit facility:
    • Enter the details of your credit card or overdraft account.
    • Verify the information as prompted, usually by an OTP sent to your registered mobile number.
  6. Set up UPI PIN:
    • If you are linking a credit card, you may be asked to set a UPI PIN for secure transactions.
    • This UPI PIN will be required for authorising payments made using the linked credit facility.
  7. Confirmation: Once the setup is complete, you will receive a confirmation. Your UPI ID is now linked with the credit option, allowing you to make payments using credit.

How to use Credit on UPI

Using credit on UPI is straightforward once you have enabled it. Here is how to do it:

  1. Initiate payment:
    • Open your UPI app and select the option to make a payment.
    • Enter the UPI ID or scan the QR code of the recipient.
  2. Choose payment source:
    • When prompted to select the payment source, choose the linked credit card or overdraft facility.
  3. Enter amount: Input the amount you wish to transfer or pay.
  4. Authenticate transaction:
    • Enter your UPI PIN to authenticate the payment.
    • The transaction will be processed using the credit linked to your UPI ID.
  5. Transaction complete: You will receive a confirmation once the payment is successful, showing that the amount was debited from your credit line.

Benefits of using Credit on UPI

  1. Enhanced cash flow: Even when your bank balance is low, you can continue making payments using the credit linked to your UPI ID.
  2. Ease of use: There is no need to carry physical credit cards; you can make payments directly using your UPI ID.
  3. Widespread acceptance: UPI is accepted almost everywhere in India, so using credit via UPI opens up more payment opportunities.
  4. No additional apps required: You do not need a separate app or card reader—just your existing UPI-enabled app.
  5. Secure transactions: UPI transactions are secured by two-factor authentication, making credit-based payments as secure as debit-based ones.

Steps to create Bajaj Pay UPI ID

Bajaj Pay is a versatile UPI platform provided by Bajaj Finance, offering a range of financial services. Here is how you can create a Bajaj Pay UPI ID and enable credit on it.

  1. Visit the Google Play Store or Apple App Store and download the Bajaj Pay app.
  2. Open the app and sign up using your mobile number linked to your bank account.
  3. Verify your mobile number with the OTP sent to your phone.
  4. If you have not already completed KYC with Bajaj Finance, you will need to do so. KYC involves submitting documents like Aadhaar, PAN, and a recent photograph.
  5. Navigate to the UPI section within the Bajaj Pay app.
  6. Choose a UPI ID, usually in the format yourname@bajajpay.
  7. Link your bank account by selecting your bank from the provided list.
  8. Enter the last six digits of your debit card and the expiry date to generate a PIN.
  9. Set a UPI PIN, which you will use to authorise transactions.
  10. In the Bajaj Pay app, go to the Credit section.
  11. Follow the prompts to link to a credit card or apply for a Bajaj Finance credit line.
  12. Once approved, link this credit facility to your UPI ID.

Your Bajaj Pay UPI ID is now ready for transactions. You can use it to send or receive money, pay bills, or make purchases using either your bank balance or the linked credit line.

Tips for Using Credit on UPI

  1. Monitor your Spending: Credit can be easy to overuse, so keep track of your spending to avoid unnecessary debt.
  2. Pay your Dues on Time: Ensure you pay your credit card bills or overdraft dues on time to avoid high interest rates.
  3. Security: Always keep your UPI PIN confidential and be cautious of phishing scams. Never share OTPs or other sensitive information.
  4. Check limits: Be aware of any transaction limits set by your bank or UPI provider, especially when using credit.

Using credit on UPI is a powerful tool that combines the convenience of digital payments with the flexibility of credit. Whether it is an urgent purchase or managing monthly cash flow, credit on UPI offers a seamless way to handle transactions. By following the steps outlined above, you can easily enable and use credit on your UPI ID, including creating a Bajaj Pay UPI ID for a streamlined financial experience. Always remember to use credit responsibly to maintain financial health and enjoy the benefits of this modern payment method.

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