Published On: Thu, May 17th, 2018

Mini-Loans and Credit Lines in India: How They Are Easier to Manage than Bank Loans

When you need funds for financial emergencies, ongoing expenses or one-time purchases, you may consider applying for a loan to help tide you over. Most loans, however, need to be handled carefully so you aren’t paying extra interest or being charged additional fees and penalties while using them.

A credit line or mini-loan might work better for your needs, especially if you’re seeking short term cash loans.

photo supplied/ bankruptcydocumentslibrary.com/

Let’s look at how and why.

Why Should You Be Careful with Traditional Loans?

Generally, when you take a personal loan, car loan or home loan, there is a fixed number of EMI payments that you will need to make over a certain term.

The instalment amount will also be decided at the time of approval, and paying more than the set amount or repaying the entire pending loan can lead to prepay penalties. Defaulting on a monthly instalment incurs late fees and charges as well. And with secured loans, you may also be putting your collateral at risk.

Then we have short-term traditional cash loans from a bank or lending institution. The interest rates for these small loans are usually quite high and the counter begins the moment funds are disbursed. Whether you use the whole amount or not, you will pay interest on it for the full term of the loan.

To avoid unpleasant surprises, always check the terms, conditions, fees and charges for any loan product before taking one.

How Are Mini-Loans and Revolving Credit Lines Better?

Mini-loans and revolving lines of credit can be the perfect solution for short-term needs such as rent, bill payments, home repairs, appliance purchases, etc.

Here’s why they are better than traditional bank loans:

  • No Collateral – These are usually unsecured loans that do not require you to provide assets as collateral, or a guarantor backing your loan application.
  • Quick Approval – Credit lines and mini-loans are usually processed much faster than other loans, and funds are available instantly upon approval.
  • Flexible Term – You can make repayments and choose the term as per your own needs, rather than being forced to accept the lender’s chosen schedule.
  • Instant Loans – After you are approved for a personal line of credit, you can borrow against the available limit any time, with instant access to funds.
  • Affordable Rates – Compared to a personal loan or cash withdrawal through a credit card, the interest rates on credit lines are quite affordable.

How Can MoneyTap Help with Cash Crunches?

An app-based personal line of credit such as MoneyTap is a great way to utilize the benefits of mini-loans for various needs. How?

  • You only need to pay interest on the loan amount used from your MoneyTap credit line, not the full credit limit for which you were approved
  • You can use part or all of the credit limit when needed, and the maximum available amount will be refreshed every time you make a repayment.
  • You will have funds available anytime and anywhere through your smartphone, as well as a credit card for additional spending flexibility and rewards.
  • You can be sure of having a 24/7 financial safety net to help you deal with unexpected expenses, but with an additional no usage, no interest benefit.

Personal loans have always been the go-to for people seeking help with short-term or temporary money needs, but a personal line of credit from MoneyTap may be a more cost-effective and convenient option.  You can use a MoneyTap credit line here the right way and for the right reasons and it can help you overcome financial obstacles with ease! Apply now for a MoneyTap Personal Loan 2.0 or via their Personal Loan android app.

Author: Rahul Sharma

photo/ Public domain pictures via Pixabay

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Displaying 4 Comments
Have Your Say
  1. Md shahadat says:

    I want to loan only 100000 within 10 days

  2. Bilal Ahmad dar says:

    I want to get loan within 48hrs


    Loan apply india rs 15 lakh

  4. Dhananjay mani tripathi says:

    I know about credit terms and conditions

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