Line of Credit

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Related to credit lines: Credit cards

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 ?
"Czech Republic is planning to allocate a credit line of e1/4100 million to support Iran's infrastructure projects," Cumba said on Sunday.
Rami Nemer, the chairman and general manager of First National Bank, also hailed the credit line agreement with EIB.
350 million euros have already been provided from the European Investment Bank, which is the largest credit line ever approved to the country.
New credit lines to "deep subprime'' owners -- those with the worst credit histories -- topped out above $30,000 in the second quarter.
Credit lines vary in amount, ranging from thousands to hundreds of thousands of dollars.
Meanwhile, Rostelecom will open a three-year credit line worth RUB8.5bn at Nordea Bank at a rate of 3.25% over one-month MosPrime.
Relative to older students, the 18-21 respondents approach credit with more caution, being more likely to reject additional credit lines and significantly more likely to intend to merely hold the credit line if they do accept it.
Bank of America Corp (NYSE: BAC) (BoFA) has announced that it has cut off Countrywide Financial customers' home equity credit lines.
firms to utilize their productivity advantages, but they can't get the credit lines to do just that.
"If it were not available, they would have to use their bank credit lines, which they use for normal business operation.
Fundamental business problems, like undercharging, poor job cost accounting, or overdue receivables, are not good reasons to tap into a credit line. "It's easy money--like a credit card--and can sometimes be used as a crutch," Halt says.
To take one recent example, Leader assisted a small Brazilian company in increasing its trading volume from $5 million to $80 million and raising its international credit lines from $100,000 to $8 million in just five years.