Plenty of times it happens that we try to acquire a personal loan but get fails. Reasons may vary like you are not eligible for any purpose but then what should we do. In this case, there is an option that you can use a personal line of credit to borrow the money. It is just similar like a credit card that it lies on an agreement between you and lender that the lender will lend you money and you will repay that in installments. The money you will repay every month may get changed according to the money you borrowed. The lender will give you a maximum limit and you can borrow the money whenever needed. Here are some important points about the personal line of credit.
Tenure
In this case, no time frame is fixed in which you have to repay the amount rather than this you can fix the tenure after consulting with your lender. You should choose a tenure in which you will comfortably repay your lending amount.
Repayment
Repayment is very easy in case of personal line of credit. You can choose one of the methods provided by the lender to repay the amount. Also, you can repay the amount in one shot or in monthly installments as per your convenience.
Disbursement Time
This is a very important thing in a personal line of credit. As many lenders provide the facility of fast disbursal of the loan amount. You should submit the required documents and you will get your money in minutes after verification and approval of the loan. From second time onwards you will get the money faster because there will be no need to verify your documents again.
Fees
If you are very much familiar with personal loans that you should have this knowledge that in this case, you have to pay processing fee one time. But in case of personal line of credit, you have to pay the processing fee every time when you withdraw the money.
Cost
The personal line of credit is more cost-effective than the personal loan because you will pay a lower amount in the personal line of credit than a personal loan. In case of personal loan, you will pay interest for the whole amount you borrowed and in this case, you will pay only for small amounts you borrowed.