Union Finance Minister Nirmala Sitharaman announced another good news. Now you can easily get a loan online from ₹5,000 to ₹15,000. It also has the capacity to work offline, may sound strange, but it is true. You will get money through UPI.
The government is bringing in a new arrangement that will allow people to get instant loans of ₹5,000 to ₹15,000 through UPI (Unified Payment Interface). The most important part of this arrangement is that you wouldn’t need to do anything or get any documents to get the instant loan. Finance Minister Nirmala Sitharaman shared this touchpoint as an observation at a fintech event in Mumbai.
How this UPI loan system will work
According to a report by Moneycontrol, select banks and fintech companies are preparing to offer credit limits of ₹5,000 to ₹15,000 to UPI users. This credit limit will work like a short-term loan, which you can use immediately when needed.
Benefits of the new system
Finance Minister Nirmala Sitharaman said that under this new system, UPI users will be able to make UPI payments from their registered mobile numbers even without an internet connection. This feature will be very helpful for people living in areas with poor internet connectivity.
This government initiative will also help people who are not familiar with the banking process but still need small loans. Small businesses and common people will benefit the most. The biggest advantage is that if you are shopping and your account suddenly becomes empty, you can take a small loan through UPI to pay the bill and meet your immediate needs.