6 reasons why you should opt for a flexible personal loan

Probably we have all gone through that phase when we have felt the need to approach the bank or the individual money lenders or the relatives too, for borrowing money. But, sometimes there are various reasons that deter us from doing so. Sometimes if it is the high rate of interest on personal loans, sometimes it is the stringent rules and formalities of the banks. So to address a sudden financial crisis the easiest option a personal loan that offers flexibility to withdraw money at any given point of time.

Bajaj Finserv through its lending arm Bajaj Finance Ltd., offers a unique proposition – Personal Line of credit to its customer that allots a specific amount that can be withdrawn and used for any financial requirements. Personal Line of Credit is a personal loan that allows you to use any amount within the assigned limit and pay interest on the amount withdrawn. This is a loan where you only pay the interest amount as EMI.  By choosing it, you pay up to 45% lower EMIs every month and tackle unpredictable expenses in a convenient manner.

Need more reasons on why flexible personal loan is considered the best option for an individual? Take a look at the benefits offered by Bajaj Finserv’s Personal Line of Credit

6 Benefits of Personal Line of Credit by Bajaj Finserv:

  1. Apart from the fact that your monthly expenditure reduces by a staggering 45%, a line of credit is an extremely convenient form of financing.
  2. It gives you the option to make as many withdrawals as you’d like to, when you’d like to. There is no limit on the number of withdrawals that you can make. This helps you address unpredictable expenses with ease.
  3. Moreover, interest is payable on the amount of the line of credit actually used by you, and not the entire amount. So, if you’ve got a Line of Credit from Bajaj Finserv for Rs.10 lakhs but you use only Rs.7 lakhs, interest is payable on Rs.7 lakhs. You don’t have to make any payments on the unused Rs.3 lakhs.
  4. Since your monthly EMIs only consist of your interest component, this also makes managing cash flows easier by reducing your monthly repayment burden.
  5. Another advantage of a line of credit is that you can convert it to a term loan at any point in the tenor.
  6. So, if you realise halfway through the tenor that you may not be able to repay the principal in one go, you can convert it to a term loan. Then, you can pay it off as monthly EMIs.

Line of credit from Bajaj Finserv also gives you benefits including instant loan approval, disbursal within 72 hours, attractive interest rates, and loans up to Rs.25 lakhs.

Repayment of Principal amount

Personal Line of Credit requires the principal amount to be paid only at the end of the tenor. Again, you have the option to either make part prepayments towards the principal amount as and when your financial situation allows you to do so, or you can opt for bullet repayment.

What is bullet repayment?

Bullet repayment simply means repaying the principal of your loan as a lump sum at the end of the tenor of the line of credit. For example, if you take a line of credit amounting to Rs.10 lakhs, you will have to repay this amount at the end of your tenor, which is 60 months or 5 years.


Himanshu Yadav is editor @Blogtechnika and is a graduated in Electronics & Communication Engineering. He loves writing, spending time on the internet and exploring cool gadgets.

If you want to contact him then you can drop a mail at himanshu[at]blogtechnika[dot]com.

Follow him on twitter – @techim.

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