Personal Line of Credit is a personal loan that allows consumer to use any amount within the assigned limit and pay interest on the amount withdrawn. This is a loan where the user only pays the interest amount as EMI. Consumer opting for Line of credit pay up to 45% lower EMIs every month and tackle unpredictable expenses in a convenient manner.
Moreover, Bajaj Finserv Line of Credit through its hassle free and convenient processes, offers consumer friendly financing options with no excessive interest rate burden.
Benefits of Personal Line of Credit by Bajaj Finserv:
- Lower instalments: Since consumer don’t start paying interest charges until usage of loan amount, the instalments are likely to be of a much smaller
- Flexibility: Line of credit allows you the flexibility to choose the amount you want to withdraw as well as the repayment tenure that ranges between 24 to 60 months
- No collateral: Line of credit is one of the few financing avenues that require no proof of your assets or collateral against the loan amount
- No hidden costs: You are not expected to pay any fees for the withdrawals you make. There are no limits on the numbers of times you can make withdrawals either
Another advantage of a line of credit is that one can convert it to a term loan at any point in the tenor. So, if a consumer realises halfway through the tenor that he or she may not be able to repay the principal in one go, they can convert it to a term loan pay it as monthly EMIs.
Line of credit from Bajaj Finserv also gives benefits including instant loan approval, disbursal within 72 hours, attractive interest rates, and loans up to Rs.25 lakhs.
Repayment of Principal amount
Personal Line of Credit requires the principal amount to be paid only at the end of the tenor. Consumers have the option to either make part prepayments towards the principal amount as and when the financial situation allows to do so, or can opt for bullet repayment.
What is bullet repayment?
Bullet repayment simply means repaying the principal of your loan as a lump sum at the end of the tenor of the line of credit. For example, if you take a line of credit amounting to Rs.10 lakhs, you will have to repay this amount at the end of your tenor, which is 60 months or 5 years.