Unexpected expenses can arise even in the best-laid budgets. A line of credit can be your safety net, offering readily available financial support when you need it most. If you're considering borrowing in India, a credit line may be a more suitable option compared to traditional loans.
A line of credit is a pre-approved borrowing limit attached to your account. You draw against this limit as needed, anytime within the stipulated period. Interest accrues only on the portion of the credit limit you utilize. This flexibility makes it a convenient solution for salaried individuals seeking online credit options to address personal, business, or household needs.
Types of Line of Credit:
Both types can be secured or unsecured. Unsecured lines rely on your income and credit score, while secured lines require collateral.
Revolve and renew your credit limit, ensuring ongoing financial backing for fluctuating needs.
Address diverse financial requirements, from education and medical bills to everyday shopping.
Choose an unsecured line based on your income and credit history, or opt for a secured line for higher credit amounts.
Pay off your dues in adjustable installments, aligning with your spending and avoiding debt accumulation.
Interest applies only to the used portion of your credit limit, making it a cost-effective financial tool.
Think of it as a revolving personal loan with three key components:
The overall borrowing amount approved for your account.
The timeframe during which you can withdraw funds from your credit limit.
The time allotted to repay your utilized credit. The draw and repayment periods are often identical, allowing you to spend and repay concurrently.
Line of Credit | Credit Card |
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A line of credit is a type of loan that allows you to borrow money as needed, up to a certain limit. You only pay interest on the money you actually borrow, and you can borrow and repay the money multiple times within the credit limit. | A credit card is a type of loan that allows you to borrow money for purchases and bills, up to a certain limit. You pay interest on the unpaid balance on your credit card each month. |
The interest rates may be lower compared to a credit card, especially if you have good credit. | Credit cards often have higher interest rates because they are considered to be a higher risk for lenders. |
You can apply for a specific credit limit and may sometimes require collateral. | With a credit card, you typically receive a credit limit based on your credit score and financial histo |
It has more flexible repayment terms compared to a credit card. You may be able to make minimum payments or choose a repayment plan that suits your needs | A credit card, on the other hand, generally requires you to make a minimum payment each month, which is usually a percentage of your total balance. |
Stable and regular income demonstrates your ability to repay.
Reflects past loan handling and creditworthiness.
Assesses your capacity to take on another loan considering existing financial obligations.
1. Visit our Platform: Access our website or mobile app for Instant Approval Line of Credit.
2. Complete the Application: Fill out the form with basic details and desired loan amount/term.
3. Upload Documents: Submit required documents like ID proof, address proof, and income proof.
4. Verification: E-KYC through video call is common for online verification.
Criteria may vary by lender, but some common requirements include:
For salaried professionals, FlexSalary offers an attractive alternative to instant personal loans: