The comprehensive guide to using your line of credit in a prudent manner.

Credit lines serve as invaluable financial tools, offering you the flexibility to access funds up to a predetermined limit. Whether it's covering unexpected expenses, funding an urgent trip, or undergoing a home renovation, credit lines provide a financial cushion and liquidity when needed. This borrowing alternative is particularly beneficial in cases where your upfront expenses are unknown, providing you easy fund access without the need of applying for a loan each time. Moreover, you pay EMIs only on the funds consumed which makes it an affordable loan option.

When it comes to choosing a suitable line of credit, IDFC FIRST Bank’s FIRSTmoney comes with a smart solution that offers you a high loan amount, flexible repayment plan, and zero foreclosure charges along with the flexibility to draw funds anytime as when needed. Go through this blog to understand how you can use your credit line effectively, along with learning about FIRSTmoney smart personal loans in detail. 

Tips to use line of credit effectively
 

1. Establish a clear purpose: Before accessing your credit line, have a clear understanding of why you need the funds. Whether it's for emergencies, large purchases, or any other reason, defining your purpose will guide your borrowing decision. With higher approved limits of up to ₹10 lakhs, FIRSTmoney can be a reliable partner for your varying monetary needs.

2. Borrow responsibly: Only borrow what you need and can comfortably repay. Avoid maxing out your credit line unnecessarily, as it can lead to financial strain and higher interest costs. FIRSTmoney offers you the flexibility to withdraw amounts as low as ₹5,000 to fulfil your financial liabilities and avoid any burden later.

3. Budget and plan repayments: Incorporate credit line repayments into your budget to ensure timely payments. Planning will help you avoid missed payments and potential penalties, maintaining a positive credit history. With FIRSTmoney, you get flexible repayment tenures starting from 2 months ranging up to 60 months and zero prepayment charges to end your loan anytime

4. Use it as a safety net: Reserve your credit line for emergencies or unexpected expenses rather than routine spending. Having a financial cushion can provide peace of mind and prevent you from relying on higher-cost borrowing options during times of need. With low interest rates, and no constraints of fund uses, you can use your FIRSTmoney credit line for emergencies as well as other requirements such as funding marriage expenses, home renovations, medical expenses, and more.

5. Maintain good credit scores: Regularly monitor your credit score and financial health. Responsible credit usage, timely payments, and keeping your credit utilisation low will not only help you manage your credit line effectively but also strengthen your overall financial position.

Unique benefits of a FIRSTmoney credit line
 

• One time setup of sanction limit with no maintenance charges
  Once you have applied for your FIRSTmoney loan, you will get a sanctioned limit for your credit line based on your creditworthiness. There are no maintenance charges that you would have to incur on your sanctioned credit line.

• Multiple withdrawals from your sanctioned limit
  FIRSTmoney offers you the flexibility of unlimited fund withdrawals. You can make multiple withdrawals up to the approved limit without any restrictions in multiples of ₹5000, allowing you to meet your financial needs whenever required.

• ZERO foreclosure charges
  FIRSTmoney also has a zero-foreclosure charge policy, which lets you utilise funds as needed and foreclose the loan in full without incurring additional charges.

• Instant approval & quick disbursement of loans into your bank account
  You can apply for a FIRSTmoney smart personal loan through a paperless, 100% digital application process. The approval and disbursal processes are quick and once your documents are successfully verified, you can get your FIRSTmoney credit line sanctioned. Once this is done, you can immediately start withdrawing funds to deal with your expenses.[

How to apply for FIRSTmoney credit lines?
 

Here are the 5 easy steps to apply for FIRSTmoney smart personal loans online:

1. Start by scanning the QR code or clicking loan from your smartphone.
2. Register using your mobile number and confirm basic/personal details to check your eligibility.
3. Select the loan amount of your choice starting from as little as ₹5,000 up to your full credit limit and choose flexible repayment terms.
4. Link your bank account where you wish the funds to be disbursed.
5. Complete the video KYC verification process with your physical PAN card.

Once you get approved of your credit limit, start using the funds right away as per your needs and withdraw money in parts or at once. 

Choosing FIRSTmoney – a  smart personal loan that empowers you with a flexible credit line

A credit line, when used wisely, can be one of the most convenient means of arranging quick funds for your expenses, eliminating the need for submitting multiple loan applications. With a credit line from FIRSTmoney, you can benefit from competitive interest rates, flexible repayment tenures, super-fast approval and disbursal processes to enjoy the flexibility of withdrawing funds from your sanctioned credit line anytime you need to. Both Salaried and Self-Employed Individuals can apply.