What is a Line Based Personal Loan?

Imagine if your Personal Loan worked like a Credit Card:

• You get a limit based on your eligibility
• You can withdraw a loan amount from that limit for a period of time and start paying EMIs
• Your limit gets reduced by the amount of loan you’ve withdrawn
•  With each EMI repaid, your limit is restored to the extent of principle repaid
• If you need to, you could withdraw a second (and a third) loan with different tenure from the remaining / available limit
• You have the freedom to repay the entire outstanding earlier without any extra cost, freeing up the entire limit

In essence, the best features of a Credit Card and Personal Loan woven into one great offering for you – #Line_based_PL

How do I sign up for a Line based PL from IDFC FIRST Bank?

#Instant and #Digital are the 2 mantras for setting up a Line based PL. The application process available on our site guides you through a simple process of KYC, repayment registration, basic information capture and T&C acceptance to get your Line set up. On an average, it takes our users less than 3 minutes to set up the Line. The days of application forms, paper documents and week-long processing times are decidedly headed for the history books.

What is the amount and period for which the loan can be availed?

Through a simple digitally enabled process, we assess your eligibility and provide you with a Credit limit. From this limit, you may draw a loan amount as small as Rs. 3000, all the way up to the limit assigned to you. The same flexibility is provided while choosing the tenure of every loan drawn – from as low as 3 months right up to 48 months depending on the loan amount. 

If I draw 3 different loans from my limit, do I need to pay 3 different EMIs?
 

Well, yes and no.

Yes, each loan you draw will have its EMI amount based on the tenure.

But all of the 3 EMIs will come due on a fixed date every month, so we will use the repayment mandate provided by you to debit your account once every month for the sum of all 3 EMIs due. We handle the complexity, so it stays simple for you!

So foreclosure is flexible and free?

Banks & NBFCs will usually charge you a foreclosure fee for Personal Loans product, it is difficult to find one that doesn’t.

For the Line based Personal Loan product, IDFC FIRST Bank has decided to make it totally flexible and free. You can fully repay any running loan at any point you want, no questions asked, no extra charges levied.

What are the other big benefits of the Line based PL?

The immense flexibility around #easy_foreclosures enable you to manage your cash flows with ease like never before - when you need money, you can avail multiple loans. When you have the money, you can repay running loans with ease.

Convenience is the other big plus – imagine going through the process of applying for a Personal Loan, the anxiety of knowing your eligibility and the interest rate again. All of that is passe.

Once set up, your Personal Loan (PL) limit will stay with you and your pricing will likely remain consistent as long as repayments are made on time.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision