Line of Credit

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Line of Credit

The maximum borrowing power granted to a person from a financial institution.

Line of credit denotes a limit of credit extended by a bank to a customer, who can avail himself or herself of its full extent in dealing with the bank but cannot exceed this limit. It most frequently covers a series of transactions, in which case, when the customer's line of credit is nearly exhausted or not replenished, the customer is expected to reduce the indebtedness by submitting payments to the bank before making additional use of the line of credit.

See: capital
References in periodicals archive ?
Through the Macedonian Bank for Development Promotion, domestic firms have at their disposal several credit lines of about 50 million euros a year with a subsidized interest rate for purchasing equipment and machinery.
Syria's General Foreign Trade Organization is seeking to buy 150,000 metric tons of sugar, 50,000 metric tons of rice, 25,000 metric tons of flour and a range of other foods using the credit line from Iran, Reuters quoted traders as saying.
These two credit lines will be used to develop our new manufacturing facility in Guilin.
Banks increase college students' credit lines gradually when they consistently show financial stability.
Morgan Stanley (NYSE: MS) has announced that it has enhanced its credit line to Israeli holding company Koor Industries.
firms to utilize their productivity advantages, but they can't get the credit lines to do just that.
Attorney's Office and the Securities and Exchange Commission came one day after Computer Associates disclosed it had drawn $600 million from one credit line to pay off another, amid signs that it is having difficulty raising money through the debt markets.
The credit line is open for one year and self-liquidates over the remaining five years, providing for the complete payment of principal at the end of the term.
MINNEAPOLIS -- FICO (NYSE:FICO), the leading provider of analytics and decision management technology, announced today the general availability of a "starter kit" for credit line optimization (CLO).
The first two credit lines of a total of 150 mil-lion euros supported 712 projects of small and medium firms and helped create 3,150 jobs.
Russian mobile operator MTS has announced completion of additional deals on two credit lines with the bank Sberbank.