Credit Line Loans: How Do They Work?
There are times when your income simply cannot keep up with your expenses. Your salary is stretched in every direction, and you look for ways to borrow some money without a high burden on your income. You don’t want a personal loan, but having small sums to help you shop and buy essentials would be nice.
Why not check out credit line loans?
What is a line of credit?
A line of credit is a pre-approved sum of money that the lender sets aside for your use. You can avail of it at a moment’s notice – the money is approved against your credit limit and you can take multiple loans as long as the credit limit is not exhausted. This loan allows you to borrow multiple small loans without the need to immediately repay the earlier borrowings. It differs fundamentally from the personal loan in this respect – the latter must be repaid in full before you can apply for a new personal loan.
Leading loan apps in India approve credit line loans and personal loans for salaried individuals working with Government or private companies, and who have a good credit score.
You can repay the line of credit loans incrementally to keep the revolving line of credit valid. This ensures that you always have a fund of money at your disposal whenever you need it.
The loan can be used for an urgent financial need or even to shop for groceries and other items.
How to use it
As mentioned above, the line of credit loan may be used in a number of ways, from meeting financial emergencies to buying things for daily life. So you can use it to finance a medical procedure, or shop for household groceries.
Leading apps in India have credit line loan tie-ups with prominent online grocery stores like Big Basket, fashion retailers like Myntra, e-commerce giants like Flipkart and Amazon, and medicine retailers like Apollo Pharmacy, among others. Thus, you can get short term retail loans to shop for a variety of products online.
The loan is dispensed in the form of a voucher or gift card that you can redeem when paying for your purchases. It can be redeemed on the brand’s website or app. This helps you get what you need without furnishing cash for it upfront – a helpful feature when you are low on funds. Thus, the loan is known as a ‘Buy Now Pay Later’ (BNPL) loan.
You can repay the line of credit loan from your salary and make periodic repayments to maintain your line of credit. This way, you can shop whenever you want from major brands without spending your salary upfront.
Conclusion
A Buy Now Pay Later loan makes it easier to shop without worry. You should avail of line of credit loans from reputed loan apps in India to have a ready source of cash at your disposal whenever you need it.
