Credit Line on UPI Growing Slowly Credit card spends via UPI have reached ₹10,000 crore, with ₹100 to ₹200 crores from credit line on UPI. Credit line on UPI, which are small, short-term pre-approved loans, is yet to scale up but has potential for future growth.
ICICI Bank Leading in Credit Line on UPI ICICI Bank is currently the top bank disbursing pre-approved loans via credit line on UPI. Other banks are expected to join, targeting new customers by offering small loans on fixed deposits.
Cost-Efficient Lending Lending against deposits is a cost-effective way for banks to provide loans, requiring minimal transactions to break even. This method helps banks offer loans against credit cards more efficiently.
Partnerships with NBFCs and Fintechs Banks may collaborate with NBFCs and fintechs to distribute credit lines on UPI, leveraging their wider reach. While only banks can currently offer credit via UPI, NBFCs and fintechs are seeking authorization to do so as well.