What Does it Mean to Opt for a Credit Line?

A credit line is a flexible credit facility given by a financial institution. It has a pre-set borrowing limit that you can withdraw at any time. The top fintech company allows you to apply for upto ₹1 lakh for diverse needs. The amount depends on your eligibility and your current monthly salary. You can pay back the amount in easy EMIs. A credit line combines multiple BNPL and one retail (personal) loan. The main advantage here is flexibility. Choose the amount and tenure as per your financial capability. Read on to know more about this unique product.

How Does a Credit Line Work?

It comes with a convenient configuration that works for all. The tenure is 1 year from the date of approval with interest rates starting at 0%*. The BNPL has an additional broken period interest rate applicable. This is because the time between the disbursal date and the first EMI is 30 days. The processing fee is ₹500 or 1% of the loan amount, whichever is higher.

Applying for the line of credit is a breeze. Follow these steps to get started:

Step 1: Download the app on your Android or iOS phone. 

Step 2: Complete your profile by uploading the necessary documents and completing the verification.

Step 3: Click on the field marked as Credit Line on the product screen.

Step 4: Set your credit limit by moving the slider.

Step 5: Now, you choose your personal loan and shopping loan.

You can have simultaneous BNPL loans running to different e-commerce sites. For example, apply for it on Myntra, Flipkart or Amazon and shop hassle-free. You can utilise 100% of the amount or in parts as per your needs. Any individual with a salary above ₹15,000 credited as a direct account transfer from their employer is eligible to apply.

BNPL Deal

This easy payment method comes with 0%* interest. You can borrow up to ₹60,000 to shop your favourite products online. It applies to different e-stores across a wide range of categories. Get them delivered to your doorstep without having to pay right away. You can choose a suitable repayment term (90 days or 180 days) and clear the debt gradually via NEFT/IMPS or auto-debit.

Personal Loan

These are unsecured short-term cash reserves with flexible repayment tenures. The amount is credited to your bank account after approval. You can use the personal loan for diverse needs like paying rent, education expenses, weddings or birthdays, vacations, or simply buying a phone or a two-wheeler.

Conclusion

You can check the status of your credit line on the app itself. It helps you track the loans, especially if you have taken more than and pay the EMIs without defaults. Otherwise, you might have to pay 0.1% per day after the grace period is over, making it a costly affair.