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Definition

Line of Credit

Line of credit is a common type of loan in which a borrowing “cap” is established and borrowers can use the credit at their discretion. Lines of credit require periodic interest payments.


Line of Credit is a pre-approved credit facility (usually for one year) enabling a bank customer to borrow up to the specified maximum amount at any time during the relevant period of time.


Line of credit is a maximum amount that a commercial bank agrees to lend to a business borrower if it has the funds available.


Line of credit means a preapproved amount of money the holder may borrow, in whole or in part, provided the bank has funds available.

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