Planning for your wedding? Or for remodeling your home? Not sure how much would the project finally cost? An open line credit would then be an apt loan for your needs. A line of credit is a loan with a standing amount from which the borrower can borrow as per his needs. There is an upper limit set during the time of signing the loan and the borrowed amount cannot exceed this.
In terms of interest, the borrower is only charged for the total amount withdrawn at a point of time. Borrowers should know that typically with a line of credit, the interest charged on an amount fluctuates with the bank rate; however in case of online loans, the interest rate will depend on the lender.
One would say, a line of credit is almost like a credit card. And is useful to those who do not have one handy. If you think, that an open loan is what you need for your current financial requirements, you might want to think of a line credit.
Submitting your information for a line of credit is easy. All you need to do is keep the following documents ready.
For eligibility criteria, please see here. Do note, that document requirements vary from lender to lender. You might also need to keep an asset as collateral to borrow. As a borrower, you are requested to comply with the requirements of specific lenders in order to ensure a smooth loan availing process.