With the line of credit facility, the borrower receives a fixed credit limit, just like with a credit card, and makes regular payments consisting of both a portion of the principal and interest to pay it off.
CASHe, a digital lending platform for employed millennials, today announced the launch of an instant personal line of credit for its customers. The line of credit facility will allow individuals to borrow funds from Rs 10,000 up to Rs 4 lakhs.
The digital lending platform will offer a flexible loan term of up to 1 year. The company says that with the line of credit facility at their disposal, CASHe customers can borrow any amount from their sanctioned limit at any time and instantly receive the selected amount in their bank accounts and repay according to the duration of the loan. loan associated with the line of credit.
What is the line of credit?
Simply put, the line of credit allows customers to have a personal cash reserve. One can either use the total approved limit all at once or choose to use part of the approved line of credit to finance their immediate needs. Interest will be charged based on the amount borrowed only, if one chooses to borrow a portion of the line of credit, not on the total approved limit.
The line of credit facility also offers customers the option of choosing an existing personal loan (PL) product from CASHe under the line of credit and also opting for a Buy Now Pay Later (BNPL) loan to finance their purchases. on popular online shopping sites like Amazon Where Flipkart. Moreover, the distribution of the overall credit line between PL and BNPL is entirely up to the client.
CASHe’s newly launched line of credit offering is a strategic response to customers’ ever-increasing need to have an on-demand credit facility available to them as well as provide them with anytime access to credit to make purchases. on online platforms with its BNPL facility. .
Yogi Sadana, CEO of CASHe, says, “The line of credit is one of many successful value additions to our portfolio. The CASHe line of credit was designed with the aim of solving the problem of customers by giving them access to credit and solving their need for cash on the spot.
Features of the instant line of credit facility offered;
- The app-based line of credit facility will provide consumers with instant funds up to Rs 4 Lakh.
- Depending on each customer’s eligibility, the line of credit facility will allow borrowing as much as needed from the approved limit and repay in flexible EMIs for up to 1 year.
- The line of credit facility can be used to take out a personal loan and/or a business loan with flexibility for the borrower on the overall allocation of the line of credit.
- The company also offers personal loan ranges – tenure starts from 2 months up to 1.5 years with loan offers starting from as little as Rs 7,000 to Rs. 4 Lakh.
Difference between a line of credit and instant credit
The loans have what is called a non-revolving credit limit, which means the borrower only has access to the loaned amount once, where they then make principal and interest payments up to that the debt is repaid.
A line of credit, on the other hand, works differently. The borrower receives a fixed credit limit, just like with a credit card, and makes regular payments consisting of both a portion of the principal and interest to pay it off. But unlike a loan, the borrower has continuous access to the funds and can access them repeatedly while active.
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