To offer credit lines for Unified Payments Interface (UPI)-based transactions, private sector lender Karnataka Bank has teamed up with Navi.

The bank with its headquarters in Mangaluru will provide credit lines to Navi's consumers.

Currently available only to a select number of pre-qualified customers, the product will eventually be made available to a wider user base in response to user input.

The goal of "Credit Line on UPI" is to make using digital banking more convenient for users while also supporting the bank's dedication to innovation and customer-focused solutions.

“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, chief executive officer, Navi Technologies.

Beginning with a short-term monthly loan product, the bank is in talks to add other options in the future, such as working capital credit lines and EMI facilities, to better meet the changing demands of its clients.

“The product provides freedom to credit access and is expected to revolutionise how people pay without cards through UPI. This strategic engagement with Navi will create significant synergies and the digital offering is a unique offering, providing a superior experience to all UPI users,” said Srikrishnan H, managing director and CEO of Karnataka Bank.

Sekhar Rao, Executive Director of Karnataka Bank, said: “By integrating a credit line directly into the UPI ecosystem, we are making it easier than ever for our customers to access credit in a secure and convenient manner. This product is designed to offer flexibility and instant access to funds, all while maintaining the simplicity and ease of use that UPI is known for. Our partnership with Navi has been instrumental in bringing this vision to life. Their 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.”