Karnataka Bank and financial services company Navi Technologies have announced the launch of credit line on UPI, an offering by the National Payments Corporation of India (NPCI).
The private sector lender will be offering credit lines through a strategic partnership with Navi, marking Karnataka Bank as one of the early adopters of this next-gen credit product.
“This is currently offered to a closed group of select users who are pre-qualified for the product, and it will be launched to more users based on customer feedback,” a release said.
It further said the bank is starting with a short-term monthly loan product and is in discussions for adding other variants, like EMI facilities, and working capital credit lines in the future, aligned to customers evolving needs.
“The product provides freedom to credit access and is expected to revolutionise how people pay without cards through UPI. This strategic engagement with Navi will create significant synergies and the digital offering is a unique offering, providing a superior experience to all UPI users,” Srikrishnan H, managing director and CEO of Karnataka Bank, said.
Sekhar Rao, executive director of the bank, said by integrating a credit line directly into the UPI ecosystem, “we are making it easier than ever for our customers to access credit in a secure and convenient manner”.
This product, Rao said, is designed to offer flexibility and instant access to funds, all while maintaining the simplicity and ease of use that UPI is known for.
