The Benefits of Having a Pre-Approved Credit Line

The Benefits of Having a Pre-Approved Credit Line

11 March 2024 | By INDIE

A good credit score backed by an excellent repayment track record can get you a pre-approved credit line from various banks and financial institutions. In times of need, a pre-approved credit line provides financial assistance that helps you tackle expenses with ease, without leaving a dent in your savings.

What Is a Pre-Approved Credit Line

A pre-approved credit line is a financial instrument provided by banks and financial institutions to customers with an excellent credit score and outstanding repayment records. The entire process is streamlined, thereby allowing you to get the funds immediately. For instance, you can get a personal credit line via INDIE My Credit Line at attractive interest rates. You can apply for this credit line without any hassles and opt for a comfortable repayment schedule. 

Also Read: The Convenience of Instant Loans: A Guide to Using Banking Apps for Quick Funds 

The line of credit approval is based on the credit inquiry conducted by the lender, wherein your creditworthiness and repayment history are assessed. An important factor that determines your eligibility for the pre-approved line of credit is your credit score. If these two factors match the standards of the lender, the pre-approved line of credit approval will be sent to you.


Benefits of a Pre-Approved Credit Line

1. Access to Instant Funds

A pre-approved credit line comes with a simplified application and line of credit approval process that helps you get funds instantly. With the processing time cut down, you can meet any emergency expense like hospitalization or sudden car repairs with ease, and without breaking your savings. A pre-approved credit line acts as a financial buffer and gives you much-deserved peace in trying situations.

2. Personalized Borrowing

A pre-approved credit line is a customized financial product that offers flexibility in terms of the amount to be borrowed. The borrowed funds can be used to manage any kind of expense. As a borrower, you can select a repayment tenure that is in sync with your current financial situation and goals. This credit line leaves the decision of “how much should you borrow” and "when should you borrow” in your hands.

3. Competitive Interest Rates

Pre-approved lines of credit are generally provided at competitive interest rates. This is because the lender would have assessed your credit creditworthiness, credit history, and repayment track record before offering you a personal credit line. By procuring a credit facility at attractive interest rates, the funds saved can be allocated towards other financial requirements.

4. Minimal or No Documentation

One of the main advantages of a pre-approved line of credit is that you get funds with minimal documentation. You do not have to worry about the lengthy documentation process as these pre-approved credit lines are offered to existing customers. In case any additional document is required, the same can be submitted online.

5. Collateral-free 

A significant benefit of a pre-approved credit line is that it is collateral-free. You do not need to pledge your assets while applying for this line of credit. This characteristic makes a pre-approved credit line beneficial to individuals who are unable to offer assets as security. It also benefits young entrepreneurs and new businesses. 

6. Large Loan Amount

Lenders offer a pre-approved line of credit only to those borrowers having a good repayment history and who show financial responsibility. The line of credit approval for those who qualify for this credit line could be for a large loan amount. This can be beneficial when you face unexpected emergencies that require a lot of funds.

7. Waiver on Charges

Though this differs between lenders, a few lenders may waive off a few charges such as processing fees, prepayment penalties, foreclosure fees, etc., on your pre-approved line of credit. 

8. Helps Improve Credit Scores

You can improve your credit score through responsible usage of a pre-approved credit line. To demonstrate that you are a responsible borrower, you can clear your dues on time, and avoid maxing out your credit limit. This has a positive impact on your credit score and opens better financial opportunities in the future to help you achieve your financial goals easily.

9. Offers Convenience

A pre-approved credit line like the INDIE My Credit Line, with its flexible borrowing and repayment terms, gives you access to funds instantly, without any hassle. You can access and manage it via your mobile app, whenever required. This feature helps you respond to any sudden financial requirement without any delay.


Getting a pre-approved credit line is quite beneficial as the flexibility and convenience it offers help you manage unexpected expenses with ease. Instant access to funds with flexible repayment tenures not only helps you tackle your financial requirements but also helps you build up your credit score. This in turn helps you get access to better financial prospects in the future. However, you must bear in mind that a pre-approved credit line is not free money; and responsible usage is vital to make the best use of this product.

So, take control of your finances and create a brighter financial future by exploring the personal credit line of INDIE by IndusInd Bank.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.