With a smartphone in your pocket, you no longer have to worry about payments. Gone are the days when people used to panic if they forgot their wallet back at their residence. Due to the increasing penetration of internet-enabled smartphones, you are eligible to complete almost every task with just a few taps.
Since the launch of UPI (Unified Payment Interface) in recent years, it has been used more and more each day. Thanks to the Government of India for promoting digital payments, which makes our country smarter with each day passing by. Look around you. Is there anything that you can’t buy with a UPI? From a single candy to a smart television, UPI offers payments of all kinds.
However, sometimes we find ourselves in a situation where we are facing a financial crunch, but the situation is just not in our hands. For example, if your air conditioner stops working during the scorching summer heat, won’t you be bound to get a new one? This is where UPI pay later steps in. It allows you to spend over and above your bank balance and conveniently clear your dues within a stipulated period and at a reasonable interest rate.
What is UPI?
A real-time payment platform produced by the NPCI (National Payments Corporation of India), UPI supports online money transfers between bank accounts through a single application. With a single tap, you can quickly recharge your mobile, pay your electricity bills and transact money online. Furthermore, it is simple, instantaneous and free. Also, a UPI payment can be made round the clock throughout the year.
What is UPI pay later?
It is a UPI-based payment feature that allows people to make payments with approved credit money. This offers them to pay their monthly bills, groceries, shop online and manage financial crunch situations.
As mentioned above, you can spend over and above your bank balance on a UPI application by opting for pay later and effortlessly clearing your dues at a reasonable interest rate.
In my case, I’ve personally been using the Bajaj Finserv application for the past year and came across the feature of pay later only recently. So it came as a saviour when I planned to purchase furniture for my new residence in New Delhi.
How does UPI pay later work?
Well, one gets an idea from the term itself that it is related to buying now and paying later. So, when you activate pay later on your UPI app, a new account gets created where a specific credit line will be assigned to you, which can be used to make a UPI payment.
(Note: You can only make payments to merchants through this overdraft account opened under the pay later scheme. Here, money transfer to individuals is restricted.)
What are the benefits of UPI pay later?
● Instant Availability of Funds
Emergency purchases tend to stress your finances when you are already going through a rough patch. However, with the pay later scheme, you get an instant digital credit line for quick payments.
● Zero Interest
Here, you get to use the credit line for free as there is no interest charged on the amount you use from this credit line as long as you make the payment within a specified period from the date of purchase. However, if you fail to make the payment by the due date, penal interest will be charged by the financial institution on the daily outstanding balance.
● Adequate Limit To Manage Monthly Expenditure
If you opt for the pay later scheme, the credit limit here will range from Rs 5,000 to Rs 50,000. Here, the bank pre-set the limit based on a customer’s eligibility and account history. Further, based on how you use the credit limit, the bank can renew, reduce or increase the limit.
All-in-all, not only does it helps you plan things efficiently but pay later acts as a saviour if you are facing a tough time in terms financially. So, the next time you witness yourself in such a situation, here is a quick guide on how to avail of this service.
- Download the Bajaj Finserv application on your smartphone.
- Sign up with your personal details
- On the home page, you’ll see the ‘Products for you’ section.
- Here, click on EMI Network Card
- Fill in the required details and proceed accordingly.
This card helps you to buy now and pay later. I have been using the same for a long time now, and trust me, it helps greatly.