How to Track Personal Loan Application Status Online?
Personal Loans are the best funding options for people who nee . . .
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Parameters | Personal Line of Credit | Credit Card |
Suitability | This loan is ideal for large-ticket purchases or recurring business expenses. | Credit cards are suitable for meeting daily expenses such as fuel costs, grocery payments, and so on. |
Loan amount | The credit limit offered under this loan is higher than the credit cards. | Credit cards typically have a lower limit. |
Interest rate | This loan type has lower interest rates than credit cards. | Credit card bills carry a monthly interest rate of 2%-4% if not paid on time. |
Accessibility | A personal line of credit is slightly more difficult to obtain than a credit card. | A credit card has simpler eligibility criteria. |
Parameters | Personal Loan | Personal Line of Credit |
Suitability | This loan is ideal for meeting any small or large expenses. People mostly apply for personal loans to cover wedding expenses, medical bills, home renovations, and debt consolidation. | You can use this loan to cover large recurring expenses such as raw material purchases, office utility bills, healthcare charges, etc. |
Interest rate | You must pay the interest rate on the entire amount disbursed to your account. | Only the withdrawn amount is subject to interest payment. |
Accessibility | You will need to reapply for this loan once you have paid off the entire amount. | When you begin making EMI payments, your credit limit is restored to the extent that the principal amount is repaid. |
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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