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 ?
In addition to the Riyadh credit line, Arif Habib Limited Head of Research Samiullah Tariq recalled Advisor to PM on Finance has announced last week that the Islamic Development Bank (IDB) would also revive credit line worth $1.2 billion for oil imports from July.
The credit line service is a maximum amount promised by countries or private institutions, depending on the receivers' creditworthiness.
The automaker stated that the credit line had a five-year-term with the possibility of two extensions.
In connection with the new credit line, Eagle's existing shares of preferred stock were also redeemed.
The announcement of a new credit line for Iran investments follows several other recent moves in the same direction.
Fransabank chairman Adnan Kassar underlined the importance of the credit lines from EIB.
Both credit lines are added to the guarantee of EUR 40 million granted by BNP Paribas early 2015, totaling a budget of over 180 million dinars to strengthen and diversify the sources of financing of UBCI and its capacity to support Tunisian companies at a time when the country enters a pivotal phase of its economic transition.
Dubai: Hungary's Export-Import Bank Magyar has opened a $406 million credit line to Emirati and Hungarian companies, Hungary's Minister for Foreign Affairs and Trade announced in Dubai on Tuesday.
"319 million euros of this credit line have so far been used by 1,583 small and medium enterprises, which have invested this money in just as many projects thus creating 6,441 jobs," said Finance Minister Zoran Stavreski.
Syria signed a previous $3.6 billion credit line with Iran in July 2013 which has been used partly for oil imports and partly for Iranian-made consumer goods, bankers have said.
M2 PHARMA-December 20, 2013-Decision Diagnostics secures USD 12.5m revolving credit line
Thanks to a $250,000 "flooring" credit line from First National Bank Alaska, Bontems was able to keep up with the demand.