Seema and Aman were marketing professionals from Mumbai. They had been trying to have a baby and had used up a sizeable chunk of their savings to fund a round of IVF treatment. But they wanted to give it a second shot without further depleting their savings. Instead of giving up on the treatment, they decided to look for options that would help them finance it.

After much deliberation, they settled on a Personal Loan with Bajaj Finserv. That’s when they found out about the Personal Line of Credit option. By choosing it, they could pay up to 45% lower EMIs every month while having a Line of Credit to tackle unpredictable expenses of the treatment.

This is because instead of taking a lump sum loan of say Rs.10 lakh, Seema and Aman got a credit line of Rs.10 lakh. From this amount, they could borrow what they needed for now. Say their current phase of treatment was worth Rs.4 lakh. They utilised that and paid interest only on Rs.4 lakh. This helped them save needless interest on the remaining amount of Rs.6 lakh.

When the couple needed more money, they could access it immediately from the remaining amount of Rs.6 lakh. Say they borrowed another Rs.2 lakhs. Now they were paying interest on Rs.8 lakhs and still had access to Rs.2 lakh. But in the third round of IVF, Seema conceived! This meant that they no longer needed the balance amount of Rs.2 lakh and didn’t need to pay interest on it.

Like Seema and Aman, you too can opt for a Line of Credit from Bajaj Finserv instead of a term loan and enjoy the same access to funds but at a cheaper cost.

Take a look at how a Line of Credit from Bajaj Finserv works out to be a much more economical source of credit.

Suppose you take a term loan of Rs.10 lakh. You choose to repay it over 60 months, with a rate of interest that is 14.50%. Keeping these three parameters in mind, your payment comes to Rs.23,528 per month. This includes payment towards the principal, interest and other fees and charges.

But, if you take a Line of Credit from Bajaj Finserv for Rs.10 lakh, with a repayment tenor of 60 months, you’ll have to pay interest at 15.50%. Now this may seem like a higher figure as compared to the interest charged on a term loan, but don’t stop reading just yet. Since each EMI consists only of the interest component, the amount flowing out of your account is only Rs.12,917, as compared to Rs.23,528 that you would pay with a term loan.

Repayment with a Line of Credit from Bajaj Finserv

Moreover, a Line of Credit from Bajaj Finserv requires the principal 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. So, continuing with our example, if you take a line of credit amounting to Rs.10 lakh, you will have to repay this amount at the end of your tenor, which is 60 months or 5 years.

Why should you choose a Line of Credit from Bajaj Finserv?

  • Apart from the fact that your monthly expenditure reduces by a staggering 45%, a line of credit is an extremely convenient form of financing.
  • 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.
  • 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 lakh but you use only Rs.7 lakh, interest is payable on Rs.7 lakh. You don’t have to make any payments on the unused Rs.3 lakh.
  • Since your monthly EMIs only consist of your interest component, this also makes managing cash flows easier by reducing your monthly repayment burden.
  • Another advantage of a line of credit is that you can convert it to a term loan at any point in the tenor.
  • 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.

Isn’t it far more affordable to use a Line of Credit from Bajaj Finserv instead of a regular term loan to finance your personal needs when you’re unsure of the exact amount you need? To calculate your EMIs for a Bajaj Finserv Line of Credit, all you have to do is use this simple calculator.

Apply for Personal Loan Check your Loan Eligibility Calculate Your EMI