What Is the Basic Eligibility Criteria for a Personal Line of Credit?
Appbased credit lines like MoneyTap are a new concept in India, and most people are unaware of what is required for getting one Lets look at what factors could affect your approval, limits and interest rates with a digital credit line
App-based credit lines like MoneyTap are a new concept in India, and most people are unaware of what is required for getting one. Let’s look at what factors could affect your approval, limits and interest rates with a digital credit line.
How Lines of Credit Work
Generally, lines of credit act as unsecured loans, providing credit options to a wider range of people than traditional bank loans. This means you don’t need to put up collateral in exchange for the money you’re borrowing. However, you still need to meet certain personal loan eligibility criteria in order to be approved.
How Are App-Based Credit Lines Different from Personal Loans?
Here’s why a line of credit through a personal loan app like MoneyTap is better than approaching a bank:
- Applying for a line of credit is quicker and more convenient than the application process for a personal loan.
- After approval, you have instant credit at your fingertips 24/7. Take as little as ₹ 3,000 up to the maximum limit which can be up to ₹ 5 Lakh with MoneyTap.
- You have the flexibility to use credit lines as cash loans or make purchases with the included credit card.
- If you’re borrowing cash against your line of credit, the interest rates are far lower than most credit cards.
- Credit lines offer much higher flexibility than loans, where the entire approved amount is transferred at once.
- If you don’t use the credit line, there is no interest applied. You only pay interest on the amount used.
- You can choose a repayment term and schedule that works for you, based on your financial situation.
- Your available credit is recharged with every repayment you make, so you can borrow against it in the future.
What Do You Need for a MoneyTap Credit Line?
When you apply for a personal line of credit through the app, here are the 5 basic factors that will be taken into consideration:
- Age – Different lenders may have their own upper and lower age limits, but getting credit at a younger age is typically easier. This is because lenders feel that you will have more time to repay your loan if you take one when you’re young. For a MoneyTap credit line, you should be between 23 and 55 years of age.
- Income – You need to be earning a salary of at least ₹20,000 a month to be approved for a MoneyTap line of credit, but self-employed professionals may also apply through the app. Again, different lending institutions may have their own minimum limits to decide whether you will be able to repay a loan or not.
- Location – MoneyTap is available to residents of the following cities as of now and more cities will be added soon:
Delhi NCR (Delhi, New Delhi, Noida, Greater Noida, Faridabad, Ghaziabad, Gurgaon), Mumbai (Mumbai, Navi Mumbai, Thane), Hyderabad, Secunderabad, Chennai, Bangalore, Pune, Ahmedabad, Vadodara, Anand, Rajkot, Surat, Bharuch, Ankhleshwar, Jaipur, Chandigarh, Mohali, Panchkula, Indore, Visakhapatnam (Vizag), Vijayawada and Coimbatore
- Credit Score – Commonly known as CIBIL score, this three-digit number determines your creditworthiness. Generally, a score of 750 and above is considered good, but you may be able to get bad credit loans or a line of credit through MoneyTap even if you don’t have a good credit score or any credit history.
- Smartphone – This isn’t technically an eligibility factor, but you cannot access a personal loan app like MoneyTap without a smartphone! At the moment, this line of credit is only available to Android users, but an iOS version of the app is also going to be launched quite soon.
While every financial institution will have its own eligibility criteria, keep these basics in mind when you apply for a personal loan or credit line. And, download MoneyTap money loan app for an instant line of credit. Even if you don’t need funds now, it’s the perfect financial backup for emergencies and short term loans at any point in life!
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