3 Tips for First-Time Credit Line Users

An instant credit line facility lets you borrow money up to ₹2,00,000. The top digital lending company offers a ‘one approval multiple loan’ facility. You can choose one personal loan and many retail loans at once. You can repay the amount on a revolving basis without having to apply for fresh funds. Withdraw only as much as you need from the cash reserve and repay on a later date via affordable EMIs. Common due dates for all loans make it easy to manage and avoid a payment default.

A credit line is an ideal choice during festivals or wedding seasons when you need to shop for plenty of different items. Use the money to buy essentials from Amazon, Flipkart or Myntra without paying from your pocket upfront. If you are using it for the first time, below are a few tips for a smooth borrowing experience. 

The Appropriate Amount 

A credit line allows you to take loans up to your credit limit with a total EMI obligation of up to 35% of your salary. So, make sure you do not overborrow. Assess your:

• Existing liabilities (debts)

• Current financial situation

• Monthly budget. 

This gives you an idea of your overall affordability to repay the loan on time. It also reduces the risk of loan rejection if your monthly income is much lower than the desired fund. Now arrive at the correct fund amount and get it transferred to your bank account instantly. 

Interest Charged 

Get an idea of the interest beforehand to manage the finance. This is the amount charged on all shopping loans when the date of disbursal and first EMI is more than 30 days. Talk to an expert to know the final amount to be paid each month. You can adjust the borrowed money or the tenure accordingly to ease the EMI burden. Download the Android or iOS app to understand every aspect of the credit line via easy number crunching. 

Salary Criteria 

The facility is offered to salaried individuals earning above ₹15,000 per month. It should be sent via direct account transfer from their employer. Companies are not allowed to take a credit line. You can boost your income via a side hustle or asking for a raise at your organisation to increase the chances of qualifying. This is necessary since lenders want to ensure your ability to repay the loan. A credit line does not ask for collateral, making it evident for the digital lender to look at your income. 

Conclusion

A penalty fee of 0.1% per day will be charged if you delay the EMI. So, you can set up an automated payment facility to avoid missing the dates. Withdraw 100% of the limit or a part and use it as per your convenience for the following year.