How to get approved for a line of credit: A complete guide

How to get approved for a line of credit: A complete guide

29 January 2024 | By INDIE

A line of credit is a strategic financial move that can provide you with flexibility and support in managing your expenses through revolving credit. Whether you are an individual seeking financial flexibility or a business owner looking to fund operations, understanding how to get approved for a line of credit can help you meet your financial requirements most conveniently. Let’s explore the key aspects of line of credit approval and know the eligibility criteria along with the strategies to enhance approval chances.

How to get approved for a line of credit?

Getting a line of credit approval is not as daunting as you may think. With simple tips and hacks, you can conveniently get a credit line. All you need to ensure is:

  1. Maintain a good credit score: The primary factor influencing line of credit approval is your credit score. Your creditworthiness is assessed based on your CIBIL score, and a higher credit score indicates responsible credit behaviour. Regularly check your credit report for inaccuracies and work on improving your score by paying bills on time and reducing outstanding debt.
  2. Establish a stable financial history: Ensure that you have a steady income and employment history. Frequent job changes or gaps in employment may raise concerns for lenders. Demonstrating financial stability enhances your credibility and increases the chance of approvals.
  3. Build a positive relationship: Relationships with financial institutions can play a significant role in the approval process. If you have a history of responsible banking, maintaining healthy balances, and fulfilling obligations, your bank may be more inclined to approve your line of credit. Approach your bank for information on their specific criteria and application process.

If you are in search of an affordable and flexible credit line, IndusInd Bank’s INDIE can be your most reliable partner. The new-age INDIE mobile app offers a quick and convenient application process with zero physical documentation and rapid approvals. Additionally, you can get instant fund access of up to ₹5 lakh to meet your urgent needs and choose a flexible repayment tenure right through the app. 

What are the eligibility criteria for a line of credit?

Understanding the eligibility criteria can help you know your financial standing regarding the line of credit and choose a suitable loan plan. Common factors include:

How to increase your chances of getting credit line approval

  1. Review and improve your credit score: Regularly monitor your credit score and take steps to improve it, such as reducing outstanding debt and resolving any discrepancies on your credit report.
  2. Reduce existing debt: A lower debt-to-income ratio enhances your creditworthiness. Aim to pay off existing debt before you apply for a line of credit.
  3. Prepare a strong application: Provide accurate and comprehensive information in your application. Highlight your financial stability, income, and expenses.


How to effectively use your credit line?

Once approved, responsible use of your line of credit is important.

  1. Budget wisely: Develop a clear budget outlining how you will use the credit. Avoid unnecessary expenditures and focus on strategic financial goals.
  2. Regularly monitor your finances: Keep a close eye on your financial statements and credit usage. Regular monitoring ensures that you stay within your limits and can address any issues promptly.
  3. Utilise wisely for growth (for Businesses): If you are a business owner, strategically use the credit to invest in areas that will contribute to the growth and profitability of your business.


The answer to how to get approved for a line of credit involves an extensive approach like financial responsibility, strategic planning, and a clear understanding of the eligibility criteria. By maintaining a strong credit profile, and responsible financial practices, you can increase your chances of securing a line of credit.

Remember, the key lies not only in obtaining approval but also in using the credit wisely to achieve your financial objectives and INDIE provides you a comprehensive solution in this regard. Along with an instant credit line of up to ₹5 lakh, you get multiple withdrawal facilities and flexible repayment tenures ranging between 3 months to 36 months. In addition to this, INDIE also comes with industry-first security features like dynamic PIN, numberless debit cards, and super OTPs. Download the app today!

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.