How to Get a Credit Line Card? 

Credit lines, also referred to as a line of credit, are a type of credit product where you have a pre-approved amount of money. You can use any amount from the pre-approved amount and will have to pay interest only on the part you use. You can also borrow direct cash from a line of credit. 

Let’s read on to know more about it and how it differs from a credit card and a personal loan. We will also read about the eligibility criteria and documents required to apply for a credit line.

Features of a Credit Line

Here are some features that make a line of credit unique -

• Can borrow within the pre-approved limit

• Don’t have to pay interest till you use the amount

• Options to borrow cash 

• Fast processing because of being pre-approved

• No limitations on usage of funds

How to Apply for Line of Credit?

Want to know how to get a line of credit? Well, you can apply for one both online and offline. Just follow these steps -

• STEP 1: Visit the official website or the nearest branch of the bank or lender.
• STEP 2: Look for the ‘credit products’ section and select the ‘Line of Credit’. If visiting the bank branch, just ask the officials for the application form.
• STEP 3: Fill in the online or offline application. 
• STEP 4: Upload the required documents or submit photocopies. 
• STEP 5:  Submit the form and wait for the lender’s approval and fund disbursal.

Documents and Eligibility for Credit Line

You have to meet the basic eligibility criteria and documentation requirement to qualify for a credit line. Here are some general eligibility criteria, which may vary based on the lender you choose -

• Age should be within 21 and 65

• Should be an Indian resident

• Should have a CIBIL score of 650 or more

• Should have a stable source of income (salaried or self-employed)

You will have to submit your proof of identity, income, and address as documents. Which documents are accepted will again depend on your lender. 

Types of Lines of Credit

Let’s learn about the types of credit lines available in the market -

• Personal Credit Line

As the name suggests, this is for individuals and can be used for any personal or family related spends. 

• Business Credit Line

This is extended to businesses and can be used for working capital, expanding, buying raw materials, machinery, etc.

• Overdraft Facility

Linked to a savings or current account, you are allowed to overdraw up to a certain limit. Overdrawing refers to withdrawing more amount than is present in your account.

• Home Equity Credit Line

This is utilized for bigger spends like home renovations or debt consolidation.

Credit Line Vs. Credit Card Vs. Personal Loan

Since these products are very similar, let’s understand their differences by a table -