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All You Need to Know About Personal Line of Credit

A Line of Credit is a unique offering, which is customized for personal loan customers, giving them the freedom to utilize the portion of the loan amount as and when it is required. This facility ensures a specified credit line that is offered for a particular loan tenor. The customer can easily withdraw from this credit line as per his/her requirements. The biggest advantage of the Line of Credit feature is that interest is only payable on the amount that is actually utilized rather than paying interest on the entire amount which is what happens in case of conventional loans. 

Customers can easily withdraw money whenever they need the same and they can also pre-pay their loan whenever they have any additional or surplus funds. The amount pre-paid can again be availed as the loan in case of particular situations. The Line of Credit offers immense flexibility and convenience to customers and they can easily repay their loans since only the interest component is charged in the monthly EMIs. The principal amount can be repaid when the loan tenor concludes. In case a customer possesses a good CIBIL score and meets all eligibility requirements for a personal loan in terms of minimum monthly income, age, employment and so on, he/she can be eligible to get a personal line of credit. One can apply for a line of credit at a reasonable rate of interest.


This facility also comes with another benefit where you can convert your credit line into a regular personal loan if you wish. Withdrawal of money whenever you want enables taking care of any sudden or unplanned expenditure. The best part is that you save hugely on interest costs since you only pay interest on the amount that you finally use. You can use these funds for literally any purpose right from renovating your home and meeting daily expenditure to taking care of the higher education of your children, weddings, vacations, medical emergencies and the like.

You will anyway be repaying lower EMIs and the application procedure is pretty simple. You can easily apply for the line of credit facility in case you meet regular eligibility requirements for a personal loan. There is minimal documentation and you can always lower your loan amount by making part pre-payments whenever you have any surplus/bonus money in hand. Also, since personal loans are unsecured loans, you will not have to furnish any collateral/security for availing of the Line of Credit facility.


You can use your lender’s customer portal for withdrawing/pre-paying money as per your convenience. Another major advantage is that there are no charges to be borne in case of pre-payment or withdrawals. Line of Credit is a handy option for those who have sudden expenses to take care of or require greater flexibility in terms of both funding and repayment.