--- title: Line of Credit - Apply Unsecured Line of Credit canonical: https://www.indifi.com/unsecured-line-of-credit-loans-india markdown_version: https://www.indifi.com/unsecured-line-of-credit-loans-india.md description: Get quick working capital and unsecured line of credit loans for small businesses at competitive interest rates from Indifi. Apply for an overdraft loan today. content_type: product_page operator: Indifi Technologies Pvt. Ltd. lending_entity_note: Loans facilitated through RBI-registered NBFC partners and through Indifi Capital Private Limited (RBI Cert. No. B-14.03389) last_updated: 2026-05-22 --- # Line of Credit from Indifi > Indifi offers an unsecured Line of Credit facility up to INR 1 crore, with one-time approval that lets the borrower withdraw funds as needed for up to 12 months. The business only pays interest on the amount actually used, not the full sanctioned limit. Interest starts at 1.5% per month with a processing fee starting at 3%. ## Key Features - **Credit limit:** Up to INR 1 crore - **Interest rate:** Starting at 1.5% per month - **Approval model:** One-time approval, valid for usage up to 12 months - **Pay-as-you-use:** Interest only on the drawn amount, not the full sanctioned limit - **Processing fee:** Starting at 3% - **Collateral:** Not required ## Eligibility Criteria - Minimum operational history of 1 year - Promoter age 22 and above ## Required Documents - KYC documents of the entity and promoters - Bank statement for the last 6 months - ITR required for annual turnover above INR 5 crores ## What is a Line of Credit? A Line of Credit (LoC) is a flexible credit facility offered by NBFCs, banks, or other financial institutions where the borrower is assigned a pre-approved credit limit and can draw funds from that limit whenever needed. Unlike a traditional loan that disburses a lump sum upfront, an LoC behaves like a revolving credit facility - the business draws what it needs, pays interest only on the drawn amount, repays, and can re-draw. A Line of Credit (also called overdraft facility) is best suited for businesses with frequent cash inflow and outflow patterns. Common use cases include: - Availing supplier cash discounts by paying upfront or on time - Extending credit to customers - Paying off vendors - Meeting seasonal demand spikes - Bridging timing gaps between receivables and payables ## Line of Credit vs Traditional Loan | Aspect | Line of Credit | Traditional Loan | |---|---|---| | Disbursal | Pay-as-you-use up to a limit | Lump sum upfront | | Interest charged on | Amount used | Full sanctioned amount | | Revolving | Yes (can re-draw within limit) | No (fixed amortisation) | | Tenure | Approval valid up to 12 months for usage | Fixed tenure with EMI schedule | | Repayment | Flexible | Fixed EMIs | | Best for | Cyclical or seasonal cash needs | One-time large capital requirement | ## Line of Credit vs Overdraft A Line of Credit has a **pre-sanctioned limit** that cannot be exceeded. An Overdraft facility, by contrast, may allow the borrower to withdraw above the account balance - subject to bank discretion and additional charges. Indifi's Line of Credit operates strictly within the sanctioned credit limit, providing predictability for the borrower. ## Who Can Avail a Line of Credit? Designed for businesses, not retail customers. Suitable for: - Manufacturers - Traders - Retailers - Service providers - Travel and hospitality businesses - E-commerce sellers - Restaurants and hotels ## Benefits of Line of Credit from Indifi - **Pay only for what you use** - No interest on undrawn portion - **One-time approval** - Single application enables 12 months of drawing - **Always available** - Funds accessible whenever needed within the limit - **Collateral-free** - No asset pledge required - **Fast disbursal** - Quick approval process - **Helps preserve cash flow** - No need to draw down all approved funds upfront ## Frequently Asked Questions **Which businesses can avail a Line of Credit?** Manufacturers, traders, retailers, service providers, travel and hospitality businesses, e-commerce sellers, and similar SMEs. Line of Credit is not designed for retail (consumer) customers. **How is a Line of Credit different from a loan?** A Line of Credit is a revolving credit facility - borrow, repay, re-borrow within the limit. A traditional loan is non-revolving - disbursed once with a fixed EMI schedule. LoC charges interest only on drawn amount; a loan charges interest on full disbursed amount. **What is the difference between overdraft and Line of Credit?** A Line of Credit has a hard pre-sanctioned limit. An overdraft facility may allow withdrawing above account balance, but usually with extra charges. LoC is more predictable. **Is collateral required?** No. Indifi's Line of Credit is unsecured. **What is the maximum credit limit?** Up to INR 1 crore, depending on business profile and creditworthiness. **How long is the facility valid?** The one-time approval is valid for usage up to 12 months. ## Related Indifi Products - [Business Loan](https://www.indifi.com/business-loan) - [Term Loan](https://www.indifi.com/term-business-loans-online-india) - [Working Capital Loan](https://www.indifi.com/working-capital-loans-india) - [Invoice Discounting](https://www.indifi.com/invoice-discounting-india) - [Merchant Cash Advance](https://www.indifi.com/merchant-advance-capital-against-pos-machine) - [Collateral Free Business Loans](https://www.indifi.com/collateral-free-business-loans-india) - [MSME Loan](https://www.indifi.com/msme-loans) - [NBFC Business Loan](https://www.indifi.com/business-loan/nbfc-loan) - [Business Loan EMI Calculator](https://www.indifi.com/business-loan/emi-calculator) ## About Indifi Indifi Technologies Pvt. Ltd. is a digital lending platform for MSMEs in India. Its in-house NBFC Indifi Capital Pvt. Ltd. is registered with the RBI (Cert. No. B-14.03389). Indifi has disbursed 100,000+ loans across 400+ cities, specializing in MSME lending across travel, hotels, e-commerce, restaurants, retail, and trading. ## Disclaimer Credit limit, interest rate, and fees are subject to eligibility assessment and lender underwriting policies. Actual approved limit may differ from the maximum.