Credit Line

[ritikpatel]

Can someone explain credit lines to me, like the Navi Credit Line?

 

[TaxWiser]

Can someone explain credit lines to me, like the Navi Credit Line?

In layman's terms, a credit line is like a 'pay later' option for your UPI transactions. It allows you to make purchases or payments using UPI even if you don't have sufficient funds in your bank account at the moment.The credit provider extends you a temporary loan or credit limit, which you can repay within a specified period.

Pro Tip: Prioritize Rupay CCs over Credit Line

 

[ritikpatel]

In layman's terms, a credit line is like a 'pay later' option for your UPI transactions. It allows you to make purchases or payments using UPI even if you don't have sufficient funds in your bank account at the moment.The credit provider extends you a temporary loan or credit limit, which you can repay within a specified period.

Pro Tip: Prioritize Rupay CCs over Credit Line

Are there any charges for using a credit line?

 

[Personal Finance by Nish…]

Can someone explain credit lines to me, like the Navi Credit Line?

A credit line is like a reusable loan. You're given a certain amount of money you can borrow, use, and repay repeatedly. You only pay interest on the amount you use, not the entire limit.

Think of it like a credit card, but instead of buying things, you get cash. You can use it for emergencies, big purchases, or ongoing expenses. Just be aware of the interest rates and fees involved.

 

[Personal Finance by Nish…]

Credit Line Common Charges
Interest Rate-The rate at which interest is charged on the outstanding balance. Rates vary depending on the lender and your credit score.

Annual Fee-Some credit lines come with an annual fee, which can range from a few hundred to several thousand dollars.

Maintenance Fee-Some lenders charge a maintenance fee, which can be monthly or annual, to keep the credit line open.

Late Payment Fee-Missed payments can result in late payment fees, which can be a flat rate or a percentage of the outstanding balance.

Over Limit Fee-Exceeding your credit limit can incur an over-limit fee.

Types of Credit Lines
Personal Line of Credit-Unsecured credit lines for personal use.

Home Equity Line of Credit (HELOC)-Secured credit lines using your home's equity.

Business Line of Credit-Credit lines for business use.

Note
When considering a credit line, carefully review the terms and conditions to understand all associated charges.

Thanks

 

[abhimarda]

Annual Fee-Some credit lines come with an annual fee, which can range from a few hundred to several thousand dollars.

Dollars? Atleast change the currency while copy pasting from Google or AI.

Home Equity Line of Credit (HELOC)-Secured credit lines using your home's equity

This HELOC term looks american to me..not commonly used in India. In fact never heard that in my banking career.