Avail Of Hassle-Free Instant Credit Loans
Instant credit loans are just another way of getting access to some instant cash while stuck in some bad financial crunch.
In the present times, most of these loans are processed through apps and sites that can bridge the gap between the borrower and the lender and connect the two for a seamless experience at both ends.
What is the difference between normal loans and credit loans:
In the case of normal loans, the credit limit is non-revolving, which means that the borrower has access to the approved loan only once, and after that, the repayment of the loan continues for the specified tenure till the entire loan amount and the accrued interest is paid off.
While in the case of credit loans, it functions more like a credit card. The person receives a credit limit, and he has to pay back the principal and the interest in regular installments.
However, the difference lies in the fact that while conventional loans provide access to funds just once, in the case of credit loans, the individual can access the money over and again whenever his needs arise.
Certain features of credit loan:
To better understand how a credit loan works, let us look at some of the highlights of credit loans.
A credit loan is a pre-approved credit limit granted to a person that can be accessed, paid off, and accessed again when needs arise. It works more like a credit card than that a loan.
It can be used for any purpose, unlike conventional loans, which are in most cases for a specified reason, like a home loan for purchasing or renovating a home, two-wheeler loans and car loans for purchasing a vehicle, education loans for meeting the expenses of higher education and so on.
However, credit loans have a higher rate of interest compared to conventional loans. Still, the advantage is that the interest is levied only on the amount that is being used by the borrower and not on the entire credit amount.
Credit loans usually have lower repayment amounts. They can be accessed by the person anytime he needs funds as long as the account is active and available credit is available.
Advantages of instant credit loans:
Instant credit loans come with a set of advantages. These are allowing the person to utilize only the amount he needs and not the entire credit amount.
Continuous access to funds, lower interest rate than credit cards, levying interest only on the amount utilized and not the entire credit amount, and flexible options for the repayment of the credit.
Some of the other advantages of credit loans are, they can be used for a long time and continuous basis compared to loans, there are not many restrictions on their use, and these are perfect for meeting short-term cash shortfalls.
However, there are some downsides associated with credit loans, and these are a higher rate of interest than conventional loans. Hence they are not suitable for the consolidation of debts. In addition, one has to maintain a good credit score to qualify for the loan, and unlike conventional loans where the rate of interest is specified, the rate of interest that will be levied on credit loans can be harder to predict.
Download the LazyPay app, get your credit limit and enjoy making those purchases like you never have !!!
