CASHe, a digital lending platform for salaried millennials today announced its launch of an instant personal Credit Line facility for its customers. The Credit Line facility will allow individuals to borrow funds starting from Rs 10,000 to up to Rs 4 lakhs.
The digital lending platform will offer a flexible loan tenure of up to 1 year. The company claims, with the Credit Line facility at their disposal, customers of CASHe can borrow any amount from their sanctioned limit at any time and receive the selected amount in their bank accounts instantly and repay as per the loan tenure associated with the Credit Line.
What exactly is the Credit Line facility?
In simple terms, the Credit Line facility allows customers to have a personal cash reserve at their disposal. One can either utilize the total approved limit at one go or choose to utilize a part of the approved Credit Line to fund one’s immediate needs. The interest will be charged based on the borrowed amount only, if one chooses to borrow a part of the Credit Line, and not on the total approved limit.
The Credit Line facility also offers customers to choose an existing personal loan product (PL) from CASHe as part of the Credit Line and also opt for a Buy Now Pay Later (BNPL) loan to fund their purchases from popular online shopping sites like Amazon or Flipkart. Further, the split of the overall credit line between the PL and BNPL is completely up to the customer.
The newly launched Credit Line offering from CASHe is a strategic response to the customer’s ever-growing need to have an on-demand credit facility at their disposal as well as to provide them with anytime access to credit to shop across online platforms with its BNPL facility.
Yogi Sadana, CEO, CASHe says, “The Credit Line facility is one of the many successful value additions to our portfolio. CASHe’s Credit Line was designed with an aim to solve customers’ problem by providing them with access to credit and by solving their need for having liquidity on the spot.”
Features of the Instant Credit Line Facility offered;
- The app-based Credit Line facility will provide consumers with instant funds for up to Rs 4 Lakh.
- Based on each customer’s eligibility, the Credit Line facility will allow one to borrow as much as required from the approved limit and repay in flexible EMIs for up to 1 year.
- The Credit Line facility can be used to take a personal loan and/or a shopping loan with flexibility to the borrower on the overall split of the Credit Line.
- The company also offers ranges of retail loans – the tenure starts from 2 months to up to 1.5 years with loan offers starting from as little as Rs 7,000 to Rs. 4 Lakh.
Difference between a line of credit and instant credit
Loans have what’s called a non-revolving credit limit, which means the borrower only has access to the amount loaned once, where they subsequently make principal and interest payments until the debt is paid off.
A line of credit, on the other hand, works differently. The borrower receives a set credit limit—just like with a credit card—and makes regular payments composed of both a principal and interest portion to pay it off. But unlike a loan, the borrower has continuous access to the funds and can repeatedly access it while it is active.