UPI Now Pay Later: Meaning, Benefits, Eligibility & How to Apply

 Ever found yourself stuck while doing a UPI payment due to a low account balance?

Well, not anymore. Here is the good news! The National Payments Corporation of India (NPCI) has recently come up with a super handy feature called UPI Now Pay Later or Pre-approved Credit Lines through UPI.

It is an excellent UPI feature that allows users to get instant credit right through their everyday UPI apps. It means UPI isn’t simply for spending your own money anymore, but also for using pre-approved credit when you need it.

Let’s break down what this new UPI facility means for you, how it helps, if you can get it, and how to set it up! 

What Is UPI Now Pay Later?

UPI Now Pay Later (also known as UPI Credit Line) is a unique feature that gives users a pre-approved digital credit limit from a bank. This means you can make instant UPI payments for purchases and pay back the borrowed amount later.  

The feature works as a short-term loan and offers you more higher flexibility when your bank balance is low. So, you can complete your purchase or payment right away, and you pay back the credit amount later, depending on the terms set by the lender.

Also Read - How UPI Is Redefining Instant Loan Repayments in India

How Does UPI Pay Later Work?

Here is how the UPI Pay Later feature works

• Pre-Approval:  The bank or lender offers a credit limit (e.g., ₹20k-₹50k) based on your profile, credibility and similar factors.
• Instant Payment:  When you scan to pay via UPI, you select the credit line instead of your bank account.
• Deferred Billing: The feature allows you to complete the transaction instantly, and the amount reflects in your credit line.
• Repayment: Once the billing cycle gets over (e.g., next month), a bill is generated for the used amount along with potential interest or fees, which you pay back.

Benefits of Using UPI Now Pay Later

Below are some of the key benefits of using UPI now pay later feature-

• Instant Credit Access: It allows you to pay for things immediately with a pre-approved credit limit, even if your bank account is low
• Wide Acceptance: You can use the feature anywhere where UPI is accepted, from large stores to small vendors, both online and offline.
• Flexible Repayment: It gives your the flexibility of paying back the credit amount later, often at the end of a billing cycle.
• Digital & Paperless: It is 100% digital onboarding and usage, with instant approvals.  

Also Read - Top 5 UPI Features You Didn’t Know You Could Use to Simplify Your Monthly Budget

Eligibility Criteria for UPI Pay Later

Here is the general UPI pay later eligibility criteria-

• Age & Residency: User should be an Indian citizen, 18 years or older
• Identification: Should have a valid PAN and Aadhaar linked to the mobile number for KYC
• Bank Account: Must have an active account with a UPI-enabled bank that offers this facility
• Creditworthiness:  Requires a credit score of 750+ and a stable income/job  
• KYC: Must have completed the Know Your Customer verification with their respective bank

Also Read - Why Brand Trust Matters—Choosing Hero FinCorp as Your Trusted Lender

How to Apply for UPI Pay Later with Hero FinCorp

Wondering how to apply for UPI Pay Later? Hero FinCorp makes the process simple through its mobile app.

Here is the step-by-step UPI Now Pay Later application guide you can follow.

Step 1: Download the Hero FinCorp App

Install the Hero FinCorp Personal Loan App.

Step 2: Sign Up

Register using your mobile number linked to Aadhaar and complete OTP verification.

Step 3: Select “UPI Pay Later”

From the dashboard, choose the UPI Pay Later option to start your application.

Step 4: Submit Details

Upload required documents such as Aadhaar, PAN, and complete KYC. Ensure your bank account is UPI-enabled.

Step 5: Credit Assessment & Approval

Hero FinCorp evaluates your eligibility and assigns a credit limit, usually within minutes.

Step 6: Activate UPI Pay Later

Set your UPI PIN and link the Pay Later facility to your UPI ID.

Once activated, you can make UPI payments instantly and repay later as per Hero FinCorp’s billing cycle. 

Safety and Security of UPI Pay Later Transactions

UPI Pay Later transactions are specifically designed with strong safeguards, making UPI Pay Later safety a key priority for banks and fintech providers.

All these transactions are strictly protected by features such as end-to-end encryption, multi-factor authentication, and mandatory UPI PIN verification. That means your financial data remains secure.  

Plus, UPI Pay Later services function under strict RBI regulations and come with several built-in UPI security features that help prevent unauthorized access and fraud for user safety. This includes:

• Real-time transaction alerts
• Spending limits,
• Instant account blocking

UPI Now, Pay Later: An Innovative Banking Solution

UPI Now Pay Later has revolutionized India's digital payment ecosystem. The powerful feature allows users to link their pre-approved credit lines from banks to the UPI system for seamless payments.  

At Hero FinCorp, we make borrowing further easier for you. From instant loan applications to easy AutoPay setup and real-time tracking, you enjoy the convenience of everything digital and fully transparent. 

So what are you waiting for? Switch to a smarter way of borrowing and repay all your dues without hassle.

Frequently Asked Questions

Can I use UPI Now Pay Later with any UPI app?

Yes, UPI Now Pay Late  is designed for interoperability, which means you can use the feature with any UPI app.

Is there a minimum credit limit to activate UPI Pay Later?

Yes, UPI Pay Later has credit limits, but the amount varies from bank to bank.

How is my credit limit for UPI Pay Later determined?

Your credit limit for UPI Pay Later is set by your bank based on factors such as financial profile, including your credit score (CIBIL), income, employment stability, and existing relationship with the bank.

Can I have multiple UPI Pay Later accounts linked simultaneously?

Yes, you can have multiple UPI Pay Later accounts linked simultaneously across different banking partners or financial service providers.

What happens if I miss the repayment due date?

Missing a payment triggers immediate late fees, damages your credit score (affecting future loans) and increases total interest paid

Does UPI Pay Later affect my credit score?

Yes, UPI Pay Later significantly affects your credit score because it's a bank-backed credit product.