Get Flexible Financial Support with a Line of Credit

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.

What is a Line of Credit?

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:

  • Personal Line of Credit: Designed for individual borrowers to meet various personal needs.
  • Business Line of Credit: Catered to businesses for managing cash flow or financing short-term expenses.

Both types can be secured or unsecured. Unsecured lines rely on your income and credit score, while secured lines require collateral.

Features of a Personal Line of Credit:

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Continuous credit support:

Revolve and renew your credit limit, ensuring ongoing financial backing for fluctuating needs.

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Multipurpose Flexibility:

Address diverse financial requirements, from education and medical bills to everyday shopping.

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Secured or Unsecured Options:

Choose an unsecured line based on your income and credit history, or opt for a secured line for higher credit amounts.

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Flexible Repayment:

Pay off your dues in adjustable installments, aligning with your spending and avoiding debt accumulation.

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Pocket-Friendly Interest:

Interest applies only to the used portion of your credit limit, making it a cost-effective financial tool.

How does a Line of Credit Work?

Think of it as a revolving personal loan with three key components:

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Credit limit:

The overall borrowing amount approved for your account.

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Draw Period:

The timeframe during which you can withdraw funds from your credit limit.

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Payoff Period:

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 vs. Credit Card:

Line of Credit Credit Card
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.

Requirements to Apply for a Line of Credit:

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Income:

Stable and regular income demonstrates your ability to repay.

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Credit History:

Reflects past loan handling and creditworthiness.

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Debt-to-Income Ratio (DTI):

Assesses your capacity to take on another loan considering existing financial obligations.

How to Apply:

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.

Required Documents:

  • Identity Proof: Government-issued ID (PAN, Aadhaar, Passport, Driving License, Army IDs)
  • Address Proof: Document confirming your residence (Aadhaar card, utility bills, rent agreement)
  • Income Proof: Salary slips, bank statements, income source documentation

Eligibility Criteria

Criteria may vary by lender, but some common requirements include:

  • Indian citizenship
  • Minimum age of 21
  • Steady income

FlexSalary: A Leading Online Line of Credit Provider

For salaried professionals, FlexSalary offers an attractive alternative to instant personal loans:

  • Credit on Salary, No Collateral: Get unsecured lines based on your salary and bank statements, even if your CIBIL score isn't high.
  • Lifetime Credit with One-Time Approval: Repay and easily renew your credit limit with a single click, avoiding repeated applications.
  • Flexible Repayment Options: Pay off your dues in installments according to your budget, with no fixed EMI requirements.
  • Competitive Interest Rates: Enjoy lower interest compared to personal loans, with potential for negotiation based on your credit score.
  • One-Time Processing Fee: Only incur a processing fee once, not every time you withdraw funds.
  • Flexible Repayment Tenure: 10-36 Months

Line of Credit Option in India-FAQs

It has an approved limit on your account for a particular period. Out of the approved credit limit, you can withdraw the money as you need and then only the interest is accrued. On the unused portion, no interest is applied.

The interest on a credit line is accrued only when and on the withdrawal of the sum out of the approved credit limit. Unlike a personal loan where the interest is credited on the total sum approval from the day of credit irrespective of the usage. Also, you can pay off your dues in variable instalments in a credit line. Whereas a personal loan is paid back in fixed monthly instalments.

The credit limit of a credit line may vary with the lender along with the changing eligibility criteria. At FlexSalary, with a salary of Rs. 4,000 you are eligible to apply for a credit limit of up to Rs. 3 Lakhs. It's an unsecured credit line that you can get just like a loan on salary.

The process of renewal of the credit limit is also subject to change with the lender. At Flexsalary you can renew your credit limit after the repayment of your dues. It gives one-time approval on its credit line hence you only have to apply once for it.
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