For some time now, we are witnessing loan payments made through UPI. UPI is getting used for a large number of activities and loan repayments being just one of them.
So what is so good about UPI payments? In a recent study by Economic Times, UPI ranks higher as the most liked gateway for loan repayments. UPI is emerging as the next best way to make quick repayments. This is why Fintech companies are launching several UPI based services, like fast loan repayments. This is expected to enhance the recovery rates of the loan installments.
Why prefer UPI for loan repayment?
UPI payments are growing at a substantial rate of 30% with new applications hitting the ground. According to a study by The Economic Times, over 40% loan repayments are covered by UPI.
So, what are the reasons for such a hike in UPI payments?
After the introduction of UPI payments, even the small and medium sized companies have been bent towards UPI payments. The seamless UI and payment experience are the add ons to an amazing start up culture. The startup culture is immensely supportive of the UPI transactions and witnesses a 10% overall increase conducted through the banks and online payment methods.
Another study declares that about 50% digital transactions will be driven by UPI by the year 2023. This is owing to the fact that the recovery cost is much lower if done online. All the digital transactions are extremely cost effective for users as well.
Prospective buyers are specifically looking at Unified Payment Interface(UPI) for loan repayments as the most preferred way of payment for home loans and EMIs. It is not just common with Fintech driven companies but also with all kinds of loans. A huge traction can be viewed in the large chunk of financial transactions. There’s an increasing trend of UPI for most payments in the financial sector.
Loan repayments have moved up by 4% in about a year or so.
Why are UPI Payments becoming so popular?
The simplicity of operations and easy to use interface offered by Google Pay for UPI transactions have promoted UPI transactions in a transparent manner for easy repayments using this particular mode of payment. On its inception, it appeared in the market with multiple offers to propagate the online business. It has not only pressurized the online payments industry but also doubled with the demonetization concept.
Are small businesses using UPI for loan repayment?
Most banks and financial institutions are offering UPI to enable all online transactions for personal loan payments. Consequently, small businesses and customers alike have a safer, quicker and easier way to make payments.
What are the ways to make UPI payments?
If you’re thinking to make a loan payment using UPI, then scan the QR code through any UPI enabled banking app / BHIM app to pay your bank loan payments.
The quick sequence of steps for making a payment using UPI can be seen as under:
- Log into account
- Insert the Loan account number
- Generate a compatible QR code
- Login through UPI application
- Scan the Code
- Proceed with Payment process
- Receive the confirmation Message