Need money urgently? Try a Personal Line of Credit
A Personal Line of Credit is a new kind of loan alternative offered by a large number of lenders. It is a facility under a personal loan under which a borrower is free to withdraw an amount as per his/her needs and pay interest only on the utilized figure and settle rest when the loan tenor ends.
The elements of Personal Line of Credit such as better interest-rates, flexibility and easy accessibility compared to credit cards are immensely contributing its popularity in India.
Let’s see the five aspects of a Personal Line of Credit that you should be aware of.
1: You pay only interest as EMIs
When you avail a Personal Line of Credit, you are free to pay only the interest part of the loan as EMI. What does it mean? It means that you can reduce your loan instalment by 45 percent on a same loan term amount. When this happens, you also take care of your finances better and save massive.
2: Parallel to bank’s overdraft facility
Every time your balance reaches a negative figure, your bank comes to your rescue and cover the payments. But, they also charge some interest-rate and even a processing fee for the overdraft facility.
In case of the Personal Line of Credit, lenders do not charge any processing fee. Even the rate of interest is lower.
3: Application is easy
You can avail a Line of Credit account just like you operate a regular one. Withdraw an amount that you need and pay off only when you can. Lenders have a very basic procedure to apply for it and make it one of the favourite financial choices nowadays.
4: No need for collaterals
Since a Line of Credit is a feature of the personal loan, it works like an unsecured loan. Just like a personal loan, a borrower needs to submit any security or collateral if you plan to avail it. If your CIBIL score is healthy and if you meet the eligibility term of your lender, you are fit to avail it.