There is no single day that passes without someone somewhere experiencing a cash emergency. It’s like crises are inevitable in our day-to-day life. But, unfortunately, it’s not simple to deal with an unexpected event with no savings at all. And that’s where loans come into play.
Nowadays, it’s easier to deal with any emergency because of the increased number of lenders, both physical lenders like banks and SACCOs and online lenders.
What is a line of credit?
I can explain a line of credit as a situation whereby a borrower applies for a loan but does not get the total amount within their limit. On the other hand, the lender charges the interest of the money that the borrower withdraws. This idea is similar to that of credit cards, and you only pay for what you have spent and not the total amount in the credit card limit.
For instance, if you have a limit of $500 and you need $100 for an emergency, you will only withdraw the $100 but not the $500. In addition, the lender charges interest on the $100 and not the $500. This criterion makes it easy to repay the loan without being pressured by high stakes.
The types of Line of Credit?
LOC has two main groups, which are:
- The secured Line of credit– in this type of LoC, the borrower provides collateral against the loan that he is borrowing. Therefore, the bank charges the borrower a smaller amount of interest compared to other loans.
- Unsecured Line of credit. This type is the opposite of the secured LOC. The borrower does not provide any form of collateral; hence the interest rates are a bit higher.
The application process
Applying for a line o credit online is straightforward. Here are some platforms where you can access Line of credit online, at the comfort of your home.
1. The CreditHuman.com
Credit human allows the borrower to get their Line of credit up to the pre-approved limit at any time. The interest rates in the Line of credit ranges around 11.99%. This rate is for both LOC overdraft and none overdraft.
CrediHuman has low monthly payments, making it easier for borrowers to budget their salaries. In addition, borrowers can access the Line of credit using credit cards, online banking, writing a check, or even by phone. This criterion makes it more convenient for any user.
Again, there is overdraft protection, so the borrower should not be warry about anything.
2. Money Tap Line of credit
Money tap is an app that provides lines of credit to borrowers. Money tap is available in 40 countries across India, and their clients can access lines of credit any time they wish.
The eligibility criteria for Money Tap line of credit
- Must be above 23 years old
- You must be earning at least $270 per month
- You should be employed or have a business
- Must be in the eligible cities
- Should provide valid identification documents
It’s free of charge to download the app and do registration. The best interest rate that you can get in MoneyTap is 15% to 18%. The repayment period is a minimum of 2 months and a maximum of 3 years.
Stash Fin is an online lender that gives both personal loans and lines of credit to its clients. To qualify for the Stash Fin line of credit, you must:
- Be at least 18 years
- Have an active checking account
- Must be self-employed or have a stable source of income
- You must be an Indian citizen and a resident
- You should provide the actual address
- Should provide real identity documents
You can apply for the Stash Fin line of credit by visiting the website or downloading the mobile application, and completing the registration.
Stash Fin charges an interest rate of around 11.99 % p.a.
4. Elastic cash Line of credit
You can open an account with Elastic cash and receive your Line of credit loans. Elastic cash also gives out payday loans to its consumers and also cash advances.
Once your account is approved, you can get a limit ranging from $500 to $4,500. Elastic cash charges an interest rate of 5% to 10%, depending on your billing cycle.
Line of credit loans is better in terms of interest rates compared to other payday loans. In addition, you only get charged your overdraft amount and not the whole loan limit. So, a Line of credit loan is good to help you manage your finances wisely.