Why Was Credit Line a Solid Choice for Borrowers Amid COVID-19?

 A credit line is a flexible personal cash reserve. A good digital company offers up to ₹2 lakhs at your disposal. The money is sent to your bank account instantly. You can draw any amount that suits your eligibility. The interest is usually charged on the used fund, not the overall approved limit. You may pack back within the following year.

It works on a ‘revolving’ basis without applying for a new loan. The top Fintech introduced the ‘One Approval, Multiple Loans’ facility. This means you can receive one personal loan and many BNPL loans through the line of credit. Have a look at why this financial product gained momentum amid COVID-19..

Unsecured Loan

A credit line does not require collateral. Do not have to pledge valuable assets like property, car, cash or stocks. It was a viable option during the pandemic since you could get a significant amount immediately without investments. The money could cover urgent medical requirements, which was the need of the hour. You may also use it for travel or immediate home repair without spending from your pockets. There were zero chances of losing precious belongings in case of an EMI default. The lender would ask for a monetary penalty to settle the disputes and proceed further. 

Minimum Salary Criteria 

In India, 40% of all employees experienced a pay cut amid COVID-19. This made it difficult to reach the income qualification to get a loan. A line of credit can be obtained with a basic ₹15,000 salary per month. This made it easily accessible for all demographics like Gen Z and millennials, even if their earnings were slashed. 

Fully Digitised 

The entire process, from application to disbursal, is 100% online. This means you do not have to stand in queues. Download the app from the Google Play Store and App Store to start the process. You may also get an online loan from the app and the website from the comfort of your home. It cuts down the need for physical paperwork or human interaction. These made the process simple, convenient and time efficient. It also eliminated the risks of corona infection since you did not have to step out and come in close contact with others.

Simple Documents 

PAN card, latest bank details, Aadhaar card and selfie, is all you require. It saves efforts so borrowers can cater to emergency needs during the pandemic. Hefty documents requested by traditional banks may be confusing and not readily available during rush hours. On the other hand, a credit line eases the burden and keeps you stress-free. 

Conclusion

Try to establish a good credit history. Plan your EMI beforehand. Keeping these simple tips in mind can go a long way to ensure a happy borrowing experience.