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.

References in periodicals archive ?
Line of credit from Bajaj Finserv also gives benefits including instant loan approval, disbursal within 72 hours, attractive interest rates, and loans up to Rs.25 lakhs.
*A $500,000 line of credit for 344 West 49th St Apt Corp., a 39-unit co-op at 344 West 49th in Manhattan; and
* There is a roll-up feature--that is, more than one account can be used to secure a line of credit.
However, the Service held that neither the debt on the new property nor the line of credit would be treated as debt attributable to the old building, since each loan had its own independent purpose.
One of those purposes was a headstrong investment in real estate which, in turn, led to a strained financial condition that finally resulted in cancellation of the bank's line of credit and involuntary liquidation of the business.
Business Line of Credit comes in two major forms - Secured and unsecured business line of credit as explained below:
(NASDAQ: HX), a fast-growing consumer lending marketplace in China, has announced that it has signed an aggregate of RMB 1 billion in line of credit agreements with Ping An Bank and Xiamen International Bank, the company said.
Rise's line of credit will offer the same simple application, approval process, rates and flexibility of the installment loan product.
Edward Howe III, managing director of the NCB New York office, reported that senior vice president Mindy Goldstein arranged $22.7 million in loans during the month, as well as the largest loan of the month, a $5.7 million first mortgage and $500,000 line of credit for Elmhurst Towers Apartments, Inc., a 160-unit co-op at 81-11 45th Avenue in Elmhurst, NY.
A bank line of credit may be the solution to any of these needs.
* Look for a card that doesn't charge an application fee or any other processing fees to open your account because they may be applied against your line of credit.