Line of Credit

Line of Credit

Understanding between customer and his bank, that may be informal, to establish a loan balance with a specific maximum limit. The bank allows the customer to draw funds from this loan or credit over a predetermined period of time until the maximum loan limit is reached.

Related posts:

1. Revolving Line of Credit
2. Demand Line of Credit
3. Credit Period
4. Full Faith-and-Credit Obligations
5. Understanding Credit Card Rate Structures