HDFC Bank has launched its ‘UPI Now Pay Later’ service i.e. Overdraft Facility for UPI payments. The government recently launched Credit Line on UPI by the NPCI and RBI in the Global FinTech Fest 2023.
There are many who cannot clear their daily expenses at times due to shortage of salary/income money in their savings account. Thus, with HDFC UPI Now Pay Later you get that required credit which you can clear on a monthly basis.
HDFC bank users can activate their UPI Now Pay Later account via Netbanking, HDFC app, and 3rd party UPI apps like Google Pay, Mobikwik, Freecharge, etc. Simply, add mobile number, date of birth, Debit Card details, PAN, and agree to the T&Cs to activate.
You can only Transfer Money to UPI merchants via HDFC UPI Now Pay Later. Thus, sending money to friends/family or any individual UPI account is banned. However, you can load money into digital wallets like Paytm, PhonePe, PayZapp, etc.
Credit limit |
Upto ₹50,000 per month (varies from user to user) | increases in time |
Credit period (with interest) |
Upto 6 months | apply for new application after this |
Interest-free period |
Nil |
Due Date / Bill Payment Period |
3 days (1-3 of every month) | can pay anytime | pay early for lesser Interest |
Processing fee (one-time non-refundable) |
₹235 (₹199 + GST) |
Interest Rate (per annum) |
16% |
For instance, below is the usage of your HDFC Bank UPI Now Pay Later account for the month of September, 2023.
Date |
UPI Credit used |
Merchant |
1/9/23 |
₹500 |
Local medicine store |
5/9/23 |
₹150 |
Zomato (food) |
15/9/23 |
₹300 |
JioMart (grocery) |
25/9/23 |
₹400 |
Bharat Petroleum (fuel) |
Now, on the last day of the month i.e. on 30th September your HDFC Bank UPI Now Pay Later bill of ₹1350 + Interest will be generated. Interest will be charged on the amount and number of days you use it so you can pay early to avoid higher interest. You will get 3 days to pay the bill i.e. till 3rd October, after which the bill amount will be automatically debited from your savings/current account. If your account balance is low then late payment charges will be applied.
ICICI Bank UPI Now Pay Later is also launched. It is better than HDFC UPI Now Pay Later because it has upto 45 days free-interest period. However, there are cons, in ICICI, processing fee and interest rate is higher. Check the below table to know all the important comparisons on HDFC and ICICI’s UPI Now Pay Later service.
Parameters |
HDFC |
ICICI |
Free-interest (0% Interest Rate) |
No |
Yes | upto 45 days |
Credit Limit |
Upto ₹50,000 |
Upto ₹50,000 |
Bill Payment Period |
3 days |
15 days |
Bill Generation |
End of every month |
End of every month |
Processing fee (one-time non-refundable) |
₹235 |
₹590 |
Interest Rate (per annum) |
16% |
42.8% |
Service charge |
No |
₹75 + applicable taxes on every ₹3000 spent in a month |
Billing Cycle |
Monthly |
Monthly |
Interest Calculation |
day-to-day |
day-to-day |
HDFC Bank UPI Pay Later service is launched but users will get access to it soon in the coming days.
nyadav.shopping213 wrote:not started yet, maybe next month
@FighterMan how to activate UPI paylater in HDFC ? sms or netbanking please guide where is option ?
I'm interested
stoptomove wrote:
I closed my paylater accounts, now this accounts based OD.. why they are doing this? Credit cards with upi and rewards are there why someone will opt for this with interest and charges
For people who don't have a credit card but need a short term loan.
abhishek012 wrote:I closed my paylater accounts, now this accounts based OD.. why they are doing this? Credit cards with upi and rewards are there why someone will opt for this with interest and charges
Credit lines on UPI will soon launched. These are not Credit lines on UPI.
This is OD account based UPI, already available on banks like SBI, Axis too.
@stoptomove
m.maharajan wrote:Credit lines on UPI will soon launched. These are not Credit lines on UPI.
Waste
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