BharatPe Flex Feature: No more worrying about money! BharatPe has introduced the new Flex feature—get a loan directly via UPI..

The digital payment landscape in India is evolving rapidly; UPI is no longer just a medium for money transfers but is increasingly becoming a "credit tool." In this context, BharatPe and YES Bank have collaborated to launch the BharatPe Flex (Credit-on-UPI) feature, which integrates a credit line directly into UPI.

What is BharatPe Flex?
It is a digital credit facility that provides users with a pre-approved credit limit. This means you can make UPI payments even if there are no funds in your bank account. Through this new service, users can make payments via UPI without relying on their bank account balance. They are granted a pre-approved credit line that can be used for daily expenses such as bill payments, online shopping, QR code scans, travel, or fuel.

How does BharatPe Flex work?
1. Application and Approval

*   The user applies for Flex via the BharatPe app.
*   A KYC and eligibility check (based on income, credit profile, etc.) is conducted.
*   If everything is in order, approval can be obtained within minutes.

2. Credit Line Allocation

*   The user is assigned a credit limit (e.g., ₹10,000 to ₹1 lakh, depending on their profile), which they can use for payments.
*   It can be described as a "mini credit card" that operates without a physical card.

3. Making Payments via UPI

*   Scan a QR code or enter the UPI ID.
*   Select "Credit Line" instead of the bank account in the payment options.
*   Enter the UPI PIN to complete the payment; the amount is deducted from the credit limit rather than your bank account.

Where can it be used?
BharatPe Flex can be used at almost any location:

1. QR scan payments at shops
2. Online shopping
3. Electricity and water bills
4. Mobile recharges
5. Travel, fuel, food, etc.

Key Features
The standout feature of BharatPe Flex is that it offers an interest-free period of up to 45 days. In other words, if the user makes the full payment within this period, they will not incur any additional charges. Alternatively, if a user does not wish to make a lump-sum payment, they can convert the amount into EMIs with tenures ranging from 3 to 12 months.

Benefits of this feature
This facility is particularly beneficial for individuals who frequently use UPI but occasionally face cash flow constraints. The credit line enables them to make immediate payments, thereby simplifying their financial planning.

Additionally, users can earn rewards on UPI payments, which is expected to further boost digital transactions. Experts believe that such 'Credit-on-UPI' products will rapidly expand access to digital credit in India and strengthen financial inclusion, especially for 'new-to-credit' users.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.