Along with business owners, many individuals choose to opt for a line of credit (LOC) or an instant credit line online over traditional corporate loans. This is simply because it is super easy to avail and is not much of a hassle in the current digital landscape.
The maximum borrowing amount here is set once the financial institution (lender) assesses the risk associated with it once someone applies for it. Today, let’s dive deep into everything about credit lines and how it is different from a personal loan.
What is an instant credit line? How to avail it?
As the term suggests, it is a pre-approved borrowing limit that is extended to a potential borrower by a lender, usually a financial institution. It basically allows you to access funds up to a certain limit without having to apply for a loan every single time. This credit line is available for immediate use once approved, offering flexibility as well as convenience.
Long gone are the days when people actually used to go to financial institutions physically in order to avail this facility. Nowadays, it is super easy to avail as you have to just download the right application and you are more than good to go.
What are the top features of an instant credit line online?
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No requirement for collateral
Instant credit lines are often unsecured. This means that one doesn’t need to provide any kind of collateral (property or assets) to secure the credit line.
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Revolving Credit Facility
This facility typically operates on a revolving credit basis. This means as you repay the borrowed amount, your available credit increases again, allowing you to borrow repeatedly up to the approved limit.
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Instant Access
Often, within a few hours or days, a credit line has a rapid approval process compared to your traditional loan application. Once it is approved, you can access the funds immediately, enabling swift financial assistance during emergencies or for planned future expenses.
What is the difference between an instant credit line and a personal loan?
- Personal loan
This type of loan offers only a fixed amount in a lump sum. They are generally used for one-time expenditures and have a fixed rate of interest and a repayment timeline.
- Instant credit line
It works just like a credit card. It is basically an unsecured revolving credit line with a limit and a variable rate of interest. A personal line of credit could be an ideal solution if you’re trying to manage your purchases and aren’t clear on the overall scope of the costs.
How to avail an instant credit line online?
Availing this facility is super easy if you do it from the right platform. Stashfin, one of the best applications for this financial instrument, offers it simply via their application. You just need to download it, and you are more than good to go. Or you can also visit their official website for Stashfin credit line.
Conclusion
A credit line offers instant access to funds, and moreover, through online platforms, managing these credit lines becomes convenient, allowing real-time monitoring at all times.