Groceries, Travel, Clothes Shopping: Get This Tool To Help You

The latter half of every year is an exciting one. Once the monsoon season ebbs, the festive season begins with occasions like Ganesh Chaturthi, Navratri, Onam, Diwali, Christmas and so on. This time of the year also coincides with the engagement and wedding season, so there are more celebrations to look forward to.

But all of these need a lot of shopping. You must stock groceries if you’re going to throw parties and entertain guests. You must shop for new clothes and shoes if you’re visiting friends and relatives, or attending wedding ceremonies. You need more money if you’re planning a getaway with your partner or your family. What happens when you don’t have the funds for all these expenses?

We tell you: you get the best tool that offers you ready cash for all your shopping needs. It’s called a ‘line of credit loan’.

What is a line of credit loan?

A line of credit loan is a sum of money borrowed against a pre-approved credit limit. The credit limit is set up for you by leading personal loan apps. Once set up, you can borrow small sums of money against it in the form of shopping or emergency loans. The instant credit line, thus, provides ready source of funds for you whenever you need it, whatever your requirement.

This category of loan differs from a personal loan in two respects:

1. Where you can borrow only one personal loan from one lending institution at a time, you can borrow a series of credit line loans from the same loan app. You can borrow loans as long as you have a viable credit limit. Repaying the loans periodically keeps the credit line active, and offers you a revolving line of credit for your use. This does not happen with a personal loan, where you must repay the loan in full before taking another one.

2. The instant line of credit loan is charged interest only on the borrowed sum, and not on the entire credit limit. Whereas, a personal loan is charged interest on the entire borrowing.

How to set up the line of credit

This is the easy part. Leading loan apps in India offer this category of loan. Choose your preferred loan app from the Google Play Store or Apple App Store and set it up as directed.

• Once set up, you will find the app’s loan products: Personal loan and Credit line. Click on ‘Credit line’ to browse the product and understand its advantages..
• Once you have set up your credit limit, you must submit the required documents (check the list mentioned on the app) and allow the app to check your credit score and repayment history.
• The app sets up your credit limit. After this, you can start browsing the app to find out their online shopping tie-ups with prominent merchants and brands in India. You can find a wide range of brands and product categories, from groceries to medicines, and from cab booking services to home cleaning and repairs.
• If you wish to buy groceries from say, Big Bazaar, using a shopping loan, you can click on the ‘Shop’ icon and look for Big Bazaar. Once in, you can borrow a shopping loan in the form of a Big Bazaar online groceries shopping voucher or gift card. When you make your purchases, you can redeem the voucher or card at checkout. You do not need to pay for your groceries at this stage, but can take delivery of the shopped items. The loan is subsequently repaid from your salary in EMIs.
• Just like Big Bazaar online grocery shopping, you can shop for clothing at brands like Myntra, or medicines from Apollo Pharmacy, or even book cabs from Uber. All of these loans work identically, with the same repayment terms.
• Repaying the loan in EMIs keeps the revolving line of credit at your disposal, to use whenever you need. You can even close the loan in one go to free up more of your credit limit for other uses.
• Instead of borrowing a series of small loans, you may borrow one large loan for an emergency. Suppose you have a credit limit of Rs 3,00,000. You may borrow Rs 2,00,000 as a credit line loan to pay for a medical procedure, or book a holiday, or even buy a new home theatre system.

Conclusion

Credit line loans are a simple financial tool that offer quick and convenient access for a variety of needs. Just be sure to get it from a reputed lending app in India.

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