12 July 2024 | By INDIE
The finance industry is advancing fast, and one of the biggest breakthroughs in the lending sector is instant credit lines. This borrowing option is reshaping how people handle their finances, interact with banks, and obtain funds for multiple purposes. Instead of dealing with slow and rigid lending processes, borrowers today enjoy a more efficient process.
Given their importance, let's learn about instant credit lines in more detail and analyse their impact on the lending industry.
An instant credit line is a revolving credit facility that allows you to borrow money repeatedly up to a pre-approved limit. Unlike regular loans, where the full amount is disbursed at once, a credit line lets you withdraw funds in increments and pay interest only on the portion used.
Following are some benefits and features of credit lines that explain how they are transforming the lending industry:
Unlike regular loans, which often have rigid lending criteria and lengthy approval processes, a credit line is simpler to secure. You can set up your account online with minimal paperwork and get instant access to funds once approved. Such accessibility means more and more people can access financing at any time, from anywhere.
The ability to access funds instantly is a critical advantage of credit lines. You can access funds exactly when you need them on flexible terms. This speedy access comes in handy when moments like urgent medical needs, last-minute travels, or educational expenses arise suddenly.
When you choose INDIE’s My Credit Line by IndusInd Bank, you get high affordability through competitive rates. You simply have to open a savings account online on INDIE to access an instant line of credit and enjoy other advantages, such as:
High borrowing amount |
Access a credit limit of up to ₹5 lakh. |
Instant access to funds |
Get funds directly into your bank account quickly and without hassle. |
Make multiple withdrawals |
You can withdraw multiple times up to your credit limit. |
Repay at your convenience |
Choose a repayment schedule between 3 and 36 months as per your repayment capabilities. |
Apply online and get an instant credit line with INDIE today!
Most borrowers appreciate the cost-efficiency of paying interest only on the amount they actually withdraw, not on the total credit limit. This is different from regular loans, where interest is charged on the full loan amount from the beginning, no matter if you use the funds or not.
A bank credit line is a type of revolving loan that lets you borrow, repay, and repeat the process within your credit limit. This revolving nature means you can use a credit line as a financial backup anytime you need without having to re-apply for new loans.
An instant line of credit not only simplifies the borrowing process but also offers a safety net for both budgeted and sudden expenses.
Credit lines make it possible for SMEs to secure funds in a timely manner. The loan proceeds can help them cover short-term cash flow gaps or capitalise on business opportunities without taking on large loans. Moreover, the ability to pay interest only on the portion used rather than the entire limit helps keep EMIs manageable.
Credit lines are reshaping the lending landscape by making credit more accessible and efficient. This borrowing option ensures monetary assistance is within everyone's reach through minimal documentation, easy lending criteria, competitive rates, real-time access to funds, and convenient repayment terms.
However, it is equally important to handle credit lines responsibly, as you are borrowing funds that will accrue interest and must be repaid. So, borrow what you can comfortably repay, plan your repayment strategy for timely payments, and use the loan proceeds for the planned purpose only.
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.
