When Should You Use a Credit Line?

It is a digital world today where people lead a fast-paced life. Today, every person demands convenience and flexibility at their fingertips, particularly when obtaining financial assistance. And that means zero hassles, zero paperwork, and zero delay. IDFC FIRST Bank’s FIRSTmoney smart personal loan is precisely designed to meet these expectations.

FIRSTmoney is a credit line that offers you the funds you need instantly. It offers an easy, quick, and convenient borrowing experience, as you can withdraw multiple times from your sanctioned amount. The best part? You only have to pay interest on what you use and not the entire credit limit. This makes a credit line better than any other regular or instant personal loan.

While this borrowing option can empower you financially, it is crucial to use it wisely and not as a mere crutch. Let’s find out more.

When does using your credit line make financial sense?
 

Look into the different scenarios where IDFC FIRST Bank’s FIRSTmoney credit line can be your financial friend.

1. Emergency buffer

Emergencies can come at any time in the form of hospital bills, sudden car repairs, urgent house repairs, or last-minute travel. All these emergency expenses can disrupt your budget. A credit line can handle the situation without the delay of loan approvals or the need to liquidate your investments.

Moreover, you pay interest only on the amount you borrow, unlike a regular loan, where interest accrues on the entire amount, no matter if you use it or not. This makes a credit line a more cost-effective way to handle immediate financial needs.

2. Capitalising on timely opportunities

Opportunities don't always come with advance notice. It might be a chance to acquire a smaller competitor, upgrade your skills with an educational course, or invest in marketing during a peak season.

Personal lines of credit allow businesses and individuals to grab these opportunities by offering 24/7 access to funds. This access to instant, ongoing funds can be the difference between growth and stagnation.

3. Funding incremental home improvements

Home improvement projects can boost the value of your property and improve your living conditions. However, these are often costly if done all at once.

A credit line offers a solution by letting you undertake incremental improvements. Instead of taking out a large regular loan, you can withdraw as needed to fund each phase of the project. This way, you don’t overborrow and pay interest only on the amount used.

4. Bridging gaps in income

There are moments when people might experience temporary gaps in their income. It can be due to job changes, contract completions, or delays in receivables. During such difficult times, a credit line can be a safety net.

This borrowing option prevents disruptions in your regular financial obligations like rent, utility bills, and other recurring payments. It offers a crucial buffer until your income stabilises.

5. Preparing for seasonal business peaks

Many businesses experience seasonal peaks when the demand for their products or services increases significantly. For example, retailers during Holi, Eid, or Diwali, caterers during the wedding season, or agricultural businesses during the harvest period all require additional capital.

Personal lines of credit prepare you for these peak seasons. You have all-time access to the funds needed to increase inventory, hire seasonal staff, or expand operations temporarily.

Why choose IDFC FIRST Bank’s FIRSTmoney credit line?
 

The FIRSTmoney credit line offers a range of useful benefits to meet your dynamic financial requirements.

• Multiple withdrawals from your sanctioned limit
  With FIRSTmoney, you have the freedom to withdraw funds as many times as you need, up to your approved limit. Each withdrawal can be in multiples of ₹5,000. Thus, you have the flexibility to meet your financial demands as they arise.
  
  
• ZERO foreclosure charges
  If you decide to pay off your loan early, FIRSTmoney won’t charge you any foreclosure fees. This allows you to settle your loan whenever you are ready without worrying about extra costs.
  
  
• No maintenance charges
  Once you set up your FIRSTmoney credit line, there are no recurring maintenance fees. Your sanctioned limit is determined based on your creditworthiness, and you can enjoy the benefits of this facility without any ongoing charges.
  
  
• Instant approval and quick disbursement
  The application process for a FIRSTmoney smart personal loan is 100% digital. Once your application is complete and the documents are verified, the credit line is swiftly set up and you can withdraw funds up to the sanctioned amount to manage your expenses right away.
  
  
• Flexible repayment options
  Choosing FIRSTmoney means getting convenient repayment options, with tenures ranging from 2 to 60 months.

How to apply for a FIRSTmoney credit line?
 

To apply for a FIRSTmoney credit line, follow these simple steps:

1. Start by scanning the QR code or clicking loan from your smartphone.
2. Register using your mobile number and confirm basic/personal details to check your eligibility.
3. Select the loan amount of your choice starting from as little as ₹5000 up to your full credit limit and choose flexible repayment terms.
4. Link your bank account where you wish the funds to be disbursed.
5. Complete the video KYC verification process with your physical PAN card.

Once your credit limit is set, you can instantly begin using the funds as needed. It is up to you if you want to withdraw the whole amount at once or in instalments.

Make a well-informed decision for your finances
 

A FIRSTmoney loan offers you the flexibility and convenience that a regular loan can hardly match. From managing emergency expenses to income gaps, it can provide financial support when you most need it. However, responsible use is important to make sure that it remains a benefit, not a burden. After all, borrowed funds must be repaid with interest.

Choose IDFC FIRST Bank's FIRSTmoney credit line to enjoy a 100% digital application process, higher loan amounts, quick approvals, and no foreclosure charges. Moreover, enjoy an affordable credit line interest rate that makes your entire borrowing journey budget-friendly and stress free. Both Salaried and Self-Employed Individuals can apply. Apply today!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.