IndiaLends Advisory

By IndiaLends Advisory

Apr 25, 2019

Is Month-End Cash Crunch Disrupting Your Shopping Spirit? Get a Line of Credit!

For most of us, salary-day is the best time of the month. The joy of re-financing your bank account with your hard earned money. We prefer eating at nice restaurants, buying new clothes or taking that weekend trip with our loved ones. With the boom in online shopping, with its massive discounts and options, the purchasing power has increased. However, this golden period is short-lived. Even after planning the monthly expenses, you may face a financial crunch; especially towards the end of the month. Let’s explore some options in such a situation including a line of credit.

Your Options When Facing A Cash Crunch

⇒ Borrow money from your friends, but they might be in the same situation.

⇒ Ask your parents, but that might be an unnecessary burden on your family.

⇒ Ask your employer for an early paycheck, but most companies do not have such a policy. Also, early paychecks depend a lot on the designation.

⇒ Withdraw some cash using your credit card and push yourself in debt with a very high rate of interest.

⇒ Line of Credit: It is a loan, which is flexible in nature and can be obtained from a bank or financial institution. A line of credit is a limited and specified amount of money that you borrow. Line of credit can be returned immediately or over a period of time. It is an unsecured loan; hence you do not require any security or collaterals. Flexibility and convenience are two important factors when it comes to a line of credit. Proper usage makes it more economical than credit card cash and it is more flexible than a personal loan.

Basics Of A Line Of Credit

⇒ Variable and competitive rate of interest

⇒ Line of credit amount can be as per your requirement

⇒ No requirement of collateral

⇒ No advance payment penalty

⇒ If you have a good credit score, the rate of interest will be much lower.

⇒ Lenders do not document the purpose of taking a Line of Credit. You can use it according to your requirements and whenever you want.

Line of credit is generally taken for a short period of time like the cash crunch you face at the end of the month. As soon as you get the salary, you can repay the amount in one go (without any penalty) or within tenure with an attractive rate of interest.

Line of credit is a financial product that can be very beneficial if it is used in a proper manner. It is a cost-effective solution to tackle your month-to-month financial situation. It is also an excellent aide when it comes to sudden expenditures like a family function, wedding, house remodeling, etc. If you are facing a financial crunch, visit IndiaLends and leave all your financial worries to us. 

There might be a bill or a sale at your favorite store, but not enough money left for those things. You think twice before getting your car or bike refueled. You realize that you have reached the month-end cash crunch and it starts bothering you.

There can be many reasons for month-end cash crunch, like a medical emergency, sudden repair of something, poor monthly budget plan, lending money to your friend in need, etc. Now you know how to handle it all.


Previous Article: Game Of Loans | 7 Personal Finance Lessons From Game of Thrones


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