How to Apply or Activate UPI Credit Line? Step-by-Step Guide

Unified Payments Interface (UPI) has introduced a game-changing feature for digital borrowers — the UPI Credit Line. If you’re looking to apply for a UPI credit line, activate it in the Paytm app, or want to know the UPI credit line application process, this guide walks you through every step.

From eligibility checks to setting up your UPI PIN, here’s everything you need to know about how to get a UPI credit line and use it seamlessly for daily transactions.

What is a UPI Credit Line?

A UPI credit line is a pre-approved digital credit facility offered by your bank, which can be linked directly to your UPI ID for instant access to funds. It works just like a personal credit line — use now, repay later.

This is particularly useful for managing short-term expenses without dipping into your savings, and is now being rolled out across platforms like Paytm.

Eligibility for UPI Credit Line

Before applying, ensure the following:

• You have a pre-approved offer from a participating bank.
• Your mobile number is linked with Aadhaar and your bank account.
• You are using a UPI-enabled app like Paytm.
• Your KYC with the issuing bank is complete.

How to Apply for UPI Credit Line Online

You can easily apply for a UPI credit line through your UPI app. Below is the typical UPI credit line application process:

Step-by-Step Instructions

1. Go to Add Account Section
   Open your UPI app and navigate to the Add Account section.
2. View List of Live Banks
   Check if your issuing bank (like SBI, PNB, etc.) is listed.
3. Select Credit Line Account
   Choose the credit line option linked with your bank.
4. Select Aadhaar Number
   Choose to proceed with Aadhaar-based verification for setting UPI PIN.
5. Accept Terms & Conditions
   Read and accept consent for using Aadhaar authentication.
6. Enter First 6 Digits of Aadhaar
   For validation, type the first 6 digits of your Aadhaar number.
7. Receive OTP from UIDAI
   Enter the OTP received on your registered mobile number.
8. Confirm OTP
   Submit OTP to proceed with Aadhaar-based authentication.
9. Set UPI PIN
   Create your UPI PIN to activate the credit line.
10. Confirm UPI PIN
    Re-enter the same UPI PIN for confirmation.
11. UPI PIN Set Successfully
    Your UPI credit line is now active and ready to use!

Steps to Enable UPI Credit Line on Paytm

Here’s how you can enable it specifically on the Paytm app:

1. Open the Paytm app.
2. Go to All UPI Services.
3. Click on ‘Credit Line on UPI’ 
4. From the list of live banks, choose your credit line provider.
5. Complete Aadhaar-based or OTP verification.
6. Enter necessary details and link the account.
7. Set and confirm your UPI PIN.

Once done, your UPI credit line on Paytm is activated and can be used for purchases, bill payments, and more.

Benefits of UPI Credit Line

• No paperwork – 100% digital process
• Instant access to pre-approved credit
• Flexible usage like a credit card
• No need for collateral
• Seamless repayment via linked bank account
• Use anytime, 24×7, for all UPI payments