en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Financial Glossary
      
Line of credit
       
 
Back

Line of credit

 Search definitions     
  Search  

Line of credit
A line of credit is a Short-term loan for a specific amount which allows you to receive money to pay for routine or regular expenses, such as rent or equipment leases.
    
This type of loan allows you to borrow repeatedly - so that you repay and re borrow as often as you need. It is a commitment by a financial Institution to lend up to a specified maximum amount to a customer during a specified period of time. Line of credit is an arrangement between a financial Institution, usually a bank, and a customer that establishes a maximum loan balance that the bank Will permit the borrower to maintain. The borrower can draw down on the line of credit at any time, as Long as he or she does not exceed the maximum set in the agreement.
    
The advantage of a line of credit over a regular loan is that Interest is not usually charged on the part of the line of credit that is unused, and the borrower can draw on the line of credit at any time that he or she needs to. Depending on the agreement with the financial Institution, the line of credit may be classified as a demand loan, which means that any outstanding balance Will have to be paid immediately at the financial Institution's request.
Posted by  Privatebanking.com
 
  Back  
  Print  
  Email  

 

private banking
Get Adobe Flash Player to view the media
FlashPlayer required to view the media
private banking
private banking
private banking
private banking
private banking

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©