Cash crunches are common to everyone these days. Some need it to pay urgent medical bills, some need it to travel urgently, some lose their job without any prior information, some suffer from  loss in the business and many more. It is good to have some savings set aside for the emergencies or for the tough time but there can be some moments in our life where our emergency fund is just not enough to overcome the situation. Borrowing from family, friends or availing a personal loan from a bank are the only options left. But you don’t have the security that you will get the money from your family and friends and when you visit the bank, the process may take time, which you are running out of. During emergencies every second counts and you can’t afford to wait. A Personal Line of credit is the solution to these kind of problems which can arise in anyone’s life.

What is a Personal Line of Credit?

A  Personal Line of Credit is basically an account which you can have with a bank or a credit union, from where you can borrow money when you need it. This account has a pre-set limit upper limit for the borrowing. You can borrow within that limit. Interest imposed only when you borrow money and only on the borrowed amount. When you pay back the borrowed amount, your available credit line is replenished. The best part of having a line of credit is that you can borrow as many times as required till you reach the upper limit of your credit line.

Manage Financial Uncertainties with a Personal Line Of Credit

You can say that a personal line of credit is a kind of predetermined or pre approved Personal Loan. As it is a preapproved loan this means you can borrow money from here without any process but borrowing is restricted to a certain amount. Unlike any other loan, you don’t need to face all those long processing and wait for them to be completed. You can take as much money as you need within the credit line limit. You can pay back the borrowed amount in the form of minimum monthly payments set by your lender. This is same as any other EMI which is for regular loans. The minimum payment is generally the combination of interest and principal or interest both.

From where Can You Get It?

You can get a Personal Line of Credit from any of the bank who are offering it.  Credit Unions are also an option to have a personal Line of Credit. You may also apply for a Personal Line of Credit through Finance Buddha. Just visit this link to apply:

What are the Purposes for Which You Can Use It?

As the name implies- Personal Line of Credit can be used for all the personal need one can have. From buying gadgets to paying medical bills it can be used for all you want. You can use this credit line even for home related expenses like home renovation, extension and many more. There is no restriction on it use till now!

Interest Rate  

Personal Line of credit is Similar to that of personal loans and credit cards, as it is unsecured in nature too.

But what makes the difference is – the interest rate of credit card ranges up 24 percent to 36 percent per annum which can start with a minimum rate of 12 percent. Whereas a Personal Line of credit can comes at a lower cost. It generally ranges from an interest rates 10.5% to of 14-15%. The percentage charged as interest totally depends on the creditworthiness and the profile of the borrower.


Money borrowed from the Personal Line of Credit can be repaid in a straightforward and simple manner. The borrowed can be completely paid off within the selected repayment and in form of EMIs. Repayment regarding a personal line of credit, on the contrary, is not done within a specific time-frame. When one pay back the borrowed amount, the available credit line is replenished again. One can borrow even frequently from this. The repayment is need to be done only for the borrowed amount not for the full amount which can be borrowed from the credit line.

How to Get a Line of Credit in India

How does a Personal Line of Credit works?
Suppose you got a Personal Line of Credit of INR. 5 lakhs for 5 years. You felt requirement and you withdraw (borrowed) INR 2 lakhs. Now the interest imposed on you will be only for this INR 2 lakhs which you withdrawn not for the full INR 5 lakhs. You need to pay EMIs for this which will include the principle amount of INR 2 lakhs along the interest on it. In the time period in which you have borrowed this amount and still paying the EMIs you felt the requirement again. In this case you can borrow again from remaining INR 3 lakhs. In the case you repay the  borrowed INR 2 lakhs and need money again, you can borrow again from a total of INR 5 lakhs. You can keep on borrowing for the complete tenure for which you got your Line of Credit.

Personal Line of Credit has the potential to rack up serious debt. You don’t need to go through the process again which you had to get a loan. With a personal line of credit you have the access to borrow money whenever you need to.

You can spend it the way you want too, regardless of any worry about whether or not it’s smart-spending.

Personal line of credit is quite tempting. It provides you money in an easy and hassle freeway whenever you need.