METHODS AND SYSTEMS FOR FACILITATING MICROCREDIT FOR PROCESSING A PAYMENT TRANSACTION

Embodiments provide methods, and systems for facilitating microcredit for processing a payment transaction. The method includes receiving, by a server system associated with a payment network, a payment transaction request initiated using a machine-readable optical label from a user device of a user. The payment transaction request includes a merchant ID of a merchant and a transaction amount. The method includes detecting an insufficient balance in an issuer account of the user. The method includes verifying, using the merchant ID, if the merchant is enabled to receive a microcredit based payment via the machine-readable optical label. the method includes facilitating a microcredit offer of a loan amount on the user device for user acceptance. Upon user acceptance of the microcredit offer, the method includes facilitating a payment transaction of the transaction amount from the issuer account of the user to an acquirer account of the merchant.