How to Use MoneyTap’s Credit Line to Your Advantage
MoneyTap is an app-based unsecured personal line of credit. It closely resembles a credit card in the sense that you are approved a certain loan amount (credit limit) that you can use for any purpose you deem fit. The repayment options are flexible. You can choose how much you want to pay every month towards the loan using MoneyTap’s personal loan EMI calculator.
Advantages of MoneyTap’s Personal Line of Credit
MoneyTap’s line of credit can be spent for whatever you want, in whatever amounts, small or large, up to your credit limit.
The advantages of a line of credit are as follows:
- The line of credit can be used for whatever you want.
- No interest is charged on the unused amount.
- The credit line can be used as a source of emergency funds.
- The line of credit is active for a lifetime. No need to reapply and go through the loan application process again. Whenever you need it, you can withdraw the amount anytime and from anywhere.
How MoneyTap’s Personal Line of Credit Works
- Download the MoneyTap app and register. MoneyTap will then determine your eligibility in real time and pre-approve your loan application. Once you receive the final approval, the credit amount of up to ₹ 5 Lakh is disbursed, and your personal credit line becomes active.
- Unlike other loans, you don’t necessarily have to withdraw the entire approved amount immediately. You can access the funds as you need them, and whenever you need them.
- You pay interest only on the amount you draw out from your credit line and not on the full credit amount approved.
- Interest rates are lower than those you get on credit cards. MoneyTap’s line of credit interest rates starts from as low as 1.08% per month.
- Repayment is flexible yet structured. You get to choose the loan tenure and EMI amount you are comfortable with. The loan tenure is from 2 months to 36 months.
Ways You Can Use MoneyTap’s Personal Line of Credit
Treat your personal line of credit as an affordable credit card and use it for these purposes:
#1. Making your marriage a memorable event without dipping into your savings and going out of the budget.
You can have a wedding of your dreams without feeling the need for dipping into your savings, selling your valuable assets or using credit cards. A straightforward unsecured personal line of credit will do just fine.
Your wedding may be on a budget but with the help of MoneyTap’s personal line of credit, you have the option to listen to your heart’s desires and indulge a little. With an always-active line of credit, you are in a good position to cover last-minute unexpected expenses.
#2. Get technology on your fingertips with a new smartphone or tablet by buying a mobile on EMI without credit card.
If you are looking to upgrade your mobile to the latest smartphone, choose the best brand with the finest features without worrying about the cost. MoneyTap’s line of credit is an affordable option that allows you to buy mobile on EMI without credit card, and without burning a hole in the pocket.
#3. An affordable travel loan that meets your needs and suits your wallet
The best way to get your travel financed is to apply for a personal line of credit. MoneyTap’s line of credit can come handy when you are traveling.
Be it your honeymoon, a family vacation or a luxury cruise, the credit line is at your disposal 24/7. You have the liberty to use it for any unexpected expenses or when an emergency strikes while you are on the move.
#4. Buy a used vehicle on a personal loan.
MoneyTap’s second hand car loan is a sensible option when you decide to buy a used car. You not only get the loan at a low interest rate with no down payment, but you also get to use the fund (if left after the used car purchase) to purchase car accessories.
#5. Renovate your home and furniture with a line of credit
Home renovations require a hefty sum of money, and it isn’t wise to use your savings. Rather, a personal credit line from MoneyTap can finance your home remodeling without impacting your valuable assets.
#6. An affordable consumer durable loan that suits your needs.
Need to upgrade your washing machine, TV or refrigerator? Using MoneyTap’s personal line of credit makes more sense than getting a consumer durable loan. The interest rates are lower, and you also get to purchase high-end consumer durables without making a down payment as is the requirement of a consumer durable loan.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org.