India's digital payment ecosystem is evolving fast, and UPI apps are no longer just about sending or receiving money. More and more platforms are now offering built-in financial services, including quick access to personal loans. If you’ve ever thought about applying for a loan but didn’t want to deal with paperwork or long waits, these apps are making the process easier and faster. In this blog, we’ll look at the top UPI apps in India that let you apply for personal loans directly from your phone, so you can handle emergencies or big purchases without any hassle.

What Is UPI-Based Credit?

UPI-based credit is a digital lending feature that links a pre-approved credit limit from your bank directly to your UPI ID. It works like a digital credit card, allowing you to pay merchants instantly using borrowed money instead of your bank balance. You repay the amount later through your UPI app. This setup gives you quick access to funds even if your account has no money. It uses data analytics to approve small loans on the spot, making it a handy option for everyday purchases. Whether you are shopping online or paying at a local store, UPI-based credit lets you complete transactions instantly and without physical contact.

Top 10 UPI Apps With Built-In Personal Loan Options

1. Freo Money

   Freo Money is one of the most complete apps when it comes to managing your money and credit in one place. It combines UPI payments, personal loans, investments, and even insurance under a single dashboard. The personal loan option works like a line of credit. You get an approved limit (up to ₹5 lakh), but you only pay interest on the amount you actually use. This is helpful if you need money in parts or want flexibility in how much you borrow.

   The entire process is paperless. You apply in-app, complete your KYC, and receive funds directly into your bank account. You can then repay the loan in easy EMIs over a period that suits you, usually between 3 to 36 months. Freo also gives you tools to track your credit score, invest in digital gold, and open FDs.

   Key features:

   • Line of credit up to ₹5 lakh, interest charged only on the amount used
   • Fully digital process with no collateral required
   • Low fees for processing or account setup
   • Flexible repayment terms from 3 to 36 months
   • Includes UPI, gold investment, insurance, FDs, and credit score tools in one app

2. PhonePe

   PhonePe has grown far beyond being just a UPI app. It now lets you apply for personal loans directly through the app. If you're eligible, you'll see pre-approved loan offers with an option to apply online. Once approved, the money goes straight into your bank account, and you repay through EMIs connected to your PhonePe profile.

   Another useful feature is the Credit Line on UPI. In partnership with banks like ICICI, PhonePe allows select users to activate a short-term credit line. This lets you make UPI payments using borrowed funds, just like using a credit card, without any plastic involved.

   Key features:

   • Personal loans available in-app for pre-approved users
   • Loan amounts from ₹5,000 up to ₹5 lakh, depending on profile
   • Tenure options go up to 60 months
   • Credit Line on UPI feature for instant borrowing via UPI
   • Smooth KYC and loan process with no paperwork

3. Google Pay (GPay)

   If you already use Google Pay, you might see personal loan offers in your app. GPay partners with licensed NBFCs like L&T Finance and DMI Finance to show loan banners that match your spending and credit profile. The application, KYC, and approval happen fully online, and the money lands in your bank account without needing to leave the app.

   Loan amounts vary based on your eligibility but often range between ₹30,000 and ₹9 lakh. The app keeps things simple while the NBFC handles the loan terms and repayment.

   Key features:

   • Loan offers inside GPay through NBFC partners
   • Amounts typically from ₹30,000 to ₹9 lakh
   • 100% digital application with instant transfer
   • Offers tailored to your spending and transaction history
   • Flexible EMI terms based on NBFC policies

4. Paytm

   Paytm offers instant personal loans inside the app. The process is quick, and if you're eligible, you can borrow anywhere from ₹10,000 to around ₹2–3 lakh. It's great for short-term needs like travel, emergencies, or shopping. The app uses your PAN, Aadhaar, and some basic info to decide how much you can get.

   Once you're approved, the amount is sent to your bank account in minutes. Repayments are handled through Paytm UPI AutoPay or eNACH, so you don't miss EMIs. It's a handy option if you already use Paytm for your bills and shopping.

   Key features:

   • Loans starting from ₹10,000 up to ₹3 lakh
   • Interest rates from around 1% per month, depending on eligibility
   • Paperless application using PAN and Aadhaar
   • EMI repayments via UPI AutoPay or eNACH
   • Integrated with Paytm’s wallet, bills, and UPI services

5. BharatPe

   BharatPe is designed mainly for merchants, but it also offers quick personal and instant loans to individuals. You can borrow for things like home repairs, business needs, or medical expenses using just PAN and Aadhaar.

   Depending on the offer, you could borrow up to ₹5 lakh for personal use or even ₹15 lakh in some cases, especially if you're a merchant. The application is online, and the money arrives quickly. Repayments are done via flexible EMIs, and in some offers, there are zero processing fees.

   Key features:

   • Instant cash loans for personal and small business use
   • Amounts go up to ₹5 lakh for individuals, ₹15 lakh for merchants
   • No collateral or guarantor needed
   • Fully digital process with fast approval
   • Works well with BharatPe’s QR payments and UPI setup

6. Navi Finserv Cash Loan

   Navi is known for its simple, fully digital approach to personal loans. It also supports UPI, insurance, mutual funds, and digital gold, making it a well-rounded financial app. If you’re eligible, you can get an instant cash loan with just your PAN and Aadhaar. The process is online, and the money is transferred directly to your bank account within minutes.

   Loan amounts can go as high as ₹20 lakh depending on your credit profile, and repayment terms can stretch up to 84 months. Navi’s clear pricing and wide range of financial services make it a solid option for salaried individuals looking for both credit and investment tools.

   Highlights:

   • Instant loans up to ₹20 lakh with digital disbursal
   • Tenures up to 84 months
   • Transparent example pricing for better planning
   • Minimum income requirement of around ₹3 lakh per year
   • Also supports UPI, insurance, mutual funds, and gold

7. CRED Loan Services

   CRED has grown from a credit card reward app into a full financial ecosystem. If you’re a CRED member with a solid credit history, you might get access to instant personal loans through the app. Loan amounts can start as low as ₹1000 and go all the way up to ₹20 lakh, with repayment terms between 1 and 84 months.

   CRED uses the Account Aggregator framework to securely read your bank data (with your permission), and then offers loan options from banks and NBFCs. It’s a great option if you want a smooth, premium borrowing experience with proper APR disclosures and tailored offers.

   Highlights:

   • Loan range from ₹100 to ₹20 lakh for eligible users
   • Repayment periods between 1 and 84 months
   • Offers based on real-time financial data and consent
   • Loans sourced from multiple banks and NBFCs
   • UPI, bill payments, and credit tools bundled into one app

8. Amazon Pay UPI Loan Options

   Amazon Pay brings together UPI payments, short-term credit, and personal loans all within the Amazon app. If you have Amazon Pay Later activated, you can get a digital credit line of up to ₹60,000 to make purchases on Amazon with flexible EMI plans. These are usually short-term, ranging from 3 to 12 months, and involve minimal documentation.

   Apart from Pay Later, some users also get personal loan offers inside the financial services section. These are backed by NBFCs and allow larger loan amounts with competitive interest rates. For Amazon shoppers who want credit for purchases or occasional cash loans, this app brings it all together.

   Highlights:

   • Instant Pay Later limit up to ₹60,000 for Amazon purchases
   • Fast onboarding with basic KYC inside the app
   • No pre-closure or processing fees on standard Pay Later usage
   • Larger personal loans via NBFC partners shown to eligible users
   • UPI features also included for everyday payments

9. KreditBee Personal Loans

   KreditBee focuses on young professionals and gig workers who may need quick access to personal loans. The app allows you to borrow as little as ₹6,000 and up to ₹10 lakh, depending on your eligibility. The repayment period ranges from 6 to 60 months, and the loan process is fully online.

   Once your KYC and basic income details are verified, the money is disbursed directly into your bank account. You can repay through net banking, debit cards, or UPI. The app is also more flexible for users with lower credit scores, although such profiles may be subject to higher interest rates.

   Highlights:

   • Loan amounts from ₹6,000 to ₹10 lakh
   • Tenures between 6 and 60 months
   • 100% online application with quick transfer to your account
   • Repayment via UPI, net banking, or debit cards
   • Available for users with a broad range of credit histories

10. Bajaj Finserv UPI Loans

    Bajaj Finserv is a trusted name in lending and has brought its wide financial services into one app. The personal loan feature supports ticket sizes from ₹40,000 up to ₹55 lakh for eligible users. Repayment tenures can go from 12 months up to 96 months, and the interest rates usually range from 10% to 31% annually.

    Everything from application to disbursal happens digitally, and you can manage your loan and UPI transactions from the same interface. If you already have a Bajaj EMI card or use Bajaj products, this app lets you bring your credit, deposits, and payments under one roof.

    Highlights:

    • Loans from ₹40,000 to ₹55 lakh
    • Repayment periods between 12 and 96 months
    • Instant loan offers with in-app KYC
    • UPI features for both EMIs and daily transactions
    • Additional tools like FD, credit cards, and EMI card in one place

How UPI Loan Integration Works

Let’s say you open your UPI app and go to the loans section. The app may show you a pre-approved loan offer based on your credit score or your transaction history. If you accept it, the money is either sent directly to your bank account or added as a credit line under your UPI ID.

Here’s what happens step by step:

• You get a loan offer through the UPI app
• You review the amount, interest rate, and tenure
• You complete KYC if needed (sometimes it's auto-filled)
• Once approved, your UPI ID gets linked to this credit line
• You can now use it like any other payment source in the app

This whole process is fast, mostly digital, and often completed in minutes. Many apps also let you track EMIs, repayment dates, and usage history without switching to another app or platform.

The Role of Unified Lending Interface (ULI)

The Unified Lending Interface, or ULI, is what makes this integration between lenders and UPI apps possible. It acts like a middle layer that connects loan providers with UPI platforms. Think of it as a bridge that handles user verification, credit checks, loan approvals, and disbursals securely.

With ULI, even small lenders can offer loans to users across different UPI apps without building their own full app. It helps standardise the process and ensures users get a consistent experience no matter which app they are using. For you as a user, this means faster loan approvals, better transparency, and more choices.

How to Apply for a Personal Loan Through UPI Apps

UPI apps are no longer just for quick money transfers. Many of them now offer instant personal loans as well. If you are short on cash and need a fast, paperless loan, applying through a UPI app can be a simple option. Here's how to go about it.

1. Download and Install the UPI App

   Start by downloading a UPI app that offers personal loan services. Apps like Freo, Google Pay, and others often partner with NBFCs or banks to provide loans. Make sure the app you choose is verified and listed on the Play Store or App Store. Once installed, open the app and set up your account with a registered mobile number.

2. Complete KYC Verification

   Before you apply for any loan, the app will ask you to complete KYC. This step usually involves uploading your Aadhaar card, PAN card, and sometimes a selfie for identity verification. Some apps let you complete e-KYC using your Aadhaar-linked mobile number and OTP. This process takes only a few minutes but is important for your loan request to be approved.

3. Link Your Bank Account

   Once KYC is done, you will need to link your bank account to the UPI app. This is the account where the loan amount will be credited. Most apps detect your account details automatically using your mobile number. You might also be asked to create a UPI PIN to allow future transactions or repayments directly from the app.

4. Check Loan Eligibility

   Now go to the personal loan section inside the app. You will usually find a banner or a tab showing “Loan Offers” or “Get Instant Loan.” The app checks your eligibility in real-time based on your credit score, KYC documents, and transaction history. Some apps offer pre-approved loan limits without requiring extra paperwork.

5. Submit Loan Application

   If you are eligible, you will see loan amounts you can apply for. Select the amount, choose the repayment duration, and confirm the interest rate. Read all the terms carefully before submitting the application. In most cases, there is no need to upload income proof or visit a branch. The loan request is processed digitally and quickly.

6. Receive Loan Disbursement

   Once your application is approved, the loan amount is disbursed directly to your linked bank account. This can happen within minutes if all details are in place. You can track the disbursement and repayment schedule inside the app. Some apps also send reminders so that you do not miss EMI payments.

Closing Thoughts

UPI apps have made personal loans feel a lot less intimidating. If you need quick money for an emergency or a planned expense, these built-in loan options can save you time and paperwork. Just make sure you check the interest rate, processing fees, and EMI terms before you accept any offer, and borrow only what you can comfortably repay.

Frequently Asked Questions

1. Which app is good for taking a personal loan?

   If you’re looking for a personal loan with a smooth process, Freo is one of the better options. It’s built for quick approval and offers flexible loan amounts.

2. Can I take a personal loan from the GPay app?

   Yes, GPay does offer loan options through partner banks and lenders. But if you don’t see any active offers in your GPay app, it’s worth checking out Freo instead.

3. Which UPI app is best for cashback?

   GPay, Freo, and Paytm are all strong contenders when it comes to cashback rewards. The exact offer can vary, so it’s good to compare them regularly.

4. What is the minimum credit score required for UPI-based personal loans?

   There’s no single answer here. Some apps prefer a credit score above 700, while others might approve you with a lower score if you meet other conditions.

5. How do UPI apps determine loan eligibility without traditional credit checks?

   UPI loan apps use data from your bank transactions, spending patterns, and mobile activity. This helps them estimate your creditworthiness even if you don’t have a strong credit history.

6. Are UPI-based personal loans safe and regulated by RBI?

   Yes, most UPI-based loan services are partnered with RBI-regulated NBFCs or banks. Make sure the app clearly shows the name of the lending partner and mentions regulatory compliance.

7. Can I get a personal loan through UPI apps without salary slips?

   It depends on the lender. Some offer loans based on your transaction history and do not always ask for salary slips, especially if your income can be verified in other ways.

8. What documents are required for UPI app personal loans?

   You usually need your Aadhaar, PAN card, and sometimes proof of income. The process is digital, so you can upload these directly through the app.

9. Do UPI-based personal loans affect my credit score?

   Yes, they can. If you make your repayments on time, it helps you build your credit score. Missing payments, however, will bring your score down.

10. How do UPI loan apps verify my identity and income?

    Most apps use Aadhaar-based eKYC and link your bank accounts to check income flow. Some may also ask you to upload basic documents for extra verification.

11. How can I get a quick personal loan through my UPI app today?

    Open the app, look for the loan section, and check if you’re eligible. If approved, the amount is usually transferred within minutes to your bank account.

12. 12What are the hidden fees I should watch for with UPI-based loans?

    Look out for processing fees, late payment charges, and GST. Some apps also add small fees for early repayment or EMI changes, so read the fine print carefully.

13. What’s the maximum amount I can borrow through UPI apps?

    It depends on the app and your profile. You may get small-ticket loans starting from ₹2,000 and go up to ₹2 lakhs or more based on your creditworthiness.

14. Can I get a personal loan through UPI apps with a low credit score?

    It’s possible. Some lenders offer loans to users with low or no credit score, especially if your income is steady and your transaction history is clean.

15. Are there any hidden charges with UPI-based personal loans?

    Most apps show charges upfront, but it’s always smart to read the loan terms. Watch for hidden processing fees, insurance add-ons, or penalty charges.

16. What’s the typical repayment period for UPI app personal loans?

    Repayment periods usually range from 3 months to 24 months. Some apps let you choose the tenure during application, so you can pick what suits you best.