SME Finance

Aditya Birla Finance Limited

Line of Credit

Quick loans to help your SMEs flourish

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Line of Credit

A line of credit, is an arrangement between a financial institutions, and a customer that establishes a maximum loan balance that the lender permits the borrower to access or maintain a customer may draw upon the available line of credit, provided that the amount does not exceed the limit. Money borrowed on the line of credit must be paid back within a specified timeframe, at a specified interest rate. Unlike a loan, however, only the money actually drawn (or used) on a line of credit is charged

Line of Credit FAQ's

A LOC is a predetermined borrowing limit that can be accessed anytime. The borrower can withdraw funds as necessary till the given limit. In the case of an open line of credit, repaid amounts can be borrowed again.

  • Personal Line of Credit
  • Business Line of Credit
  • Secured Line of Credit

A LOC can serve various purposes, such as covering wedding or vacation expenses or addressing an unforeseen financial emergency.

The timely repayment of a line of credit loan significantly influences your credit score, leading to an increase and improvement in your credit score and history. Alternatively, failure to repay your LOC on time can have a negative impact, causing a drop in your credit score.


Read More: How to get urgent Personal Loans for Bad Credit score?

To apply for a line of credit, simply visit our branch, submit all necessary documents, and undergo a credit score and income verification process. The approval of the request is contingent upon the applicant's credit score and income assessment. Once approved, the credit amount is determined, and the interest rate is based on the borrower's credit score, income, and provided security. You can explore the online line of credit option.

Proprietorship, Partnership, Public, and Private Limited Companies.
A loan is generally disbursed within 7-10 working days after the submission of complete and correct documents.
ABFL provides both short term and long term loans based on the business requirement of the client. This may range from 3 months to 12 years.
You can pay the processing fee through cheques/NEFT/RTGS facility.
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What do we offer?

  • Secured Business Loan

We offer Working Capital Demand Loan, Term Loan, and Transaction Banking Facilities with our bankers, Line of Credit, and Business Loans with flexible repayment options at a lower rate of interest.

  • Unsecured Business Loan

This is a unique business loan offering that is provided without security. It helps companies in a competitive environment through loans for business expansion, machinery purchase, or even starting a new business.

  • Working Capital Demand Loan

Having working capital to run a business may not be always possible. Explore the option of our Working Capital Demand Loan to meet your SME’s financial needs.

  • Supply Chain Financing Solutions – Invoice Discounting

This enables you to convert your receivables into cash, improves liquidity, and enables continuous cash flow. This solution provides finance by discounting the sales bills of your vendors or your purchase bills. 

We offer Working Capital Demand Loan, Term Loan, and Transaction Banking Facilities with our bankers, Line of Credit, and Business Loans with flexible repayment options at a lower rate of interest.

This is a unique business loan offering that is provided without security. It helps companies in a competitive environment through loans for business expansion, machinery purchase, or even starting a new business.

Having working capital to run a business may not be always possible. Explore the option of our Working Capital Demand Loan to meet your SME’s financial needs.

This enables you to convert your receivables into cash, improves liquidity, and enables continuous cash flow. This solution provides finance by discounting the sales bills of your vendors or your purchase bills.