Abhishek012
TF Pioneer
Navi App launches Credit Line on UPI product in partnership with Karnataka Bank:
At present, the Sachin Bansal-founded fintech company has introduced the offering to a closed group of select users. It plans to launch it to a wider user base based on feedback
Fintech firm Navi on Wednesday announced a partnership with Karnataka Bank to roll out a credit line on UPI product for customers on the platform.At present, the Sachin Bansal-founded fintech company has introduced the offering to a closed group of select users. It plans to launch it to a wider user base based on feedback.
The announcement comes as credit transactions on India's flagship payments platform, Unified Payments Interface (UPI), are reaching Rs 10,000 crore each month, out of which about Rs 100 to 200 crore come from the credit line on UPI product.
“The bank is starting with a short-term monthly loan product and is in discussions to add other variants, such as EMI facilities, working capital credit lines, etc, in the future, aligned to customers' evolving needs,” the fintech firm and the bank said in a press release.
The adoption of a credit line on UPI makes Navi one of the early players to roll out the offering.
“Today, UPI has transformed digital payments, becoming the preferred mode of payment for the majority of Indians. We believe that by leveraging the widespread reach and real-time capabilities of UPI, the credit line on UPI offering will become the future of credit via UPI, enabling millions of underbanked and underserved consumers to access credit seamlessly,” said Sachin Bansal, chairman, managing director and chief executive officer (CEO), Navi Technologies.
The National Payments Corporation of India’s (NPCI) credit line on UPI, launched last year, offers low-ticket, high-volume retail loans to individuals and businesses.
“Navi’s expertise in digital lending and innovative financial solutions complements our goal of delivering innovative banking services. Together, we are setting a new standard for how credit can be accessed and managed in the digital age,” said Sekhar Rao, executive director, Karnataka Bank.
Currently, Axis Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab National Bank (PNB), and State Bank of India (SBI) are some of the lenders live with this facility.
Among the apps, BHIM, Google Pay, Paytm, PayZapp, Navi, and Tata Neu are live on this product offering.
The credit line on UPI was off to a slow start as NPCI has not yet defined the interchange fee for this facility.
It is expected to announce the interchange this year, with it ranging from 1 per cent to 1.2 per cent per transaction.
