credit line

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Related to credit lines: Credit cards

Line of Credit

An agreement between a bank and a company or an individual to provide a certain amount in loans on demand from the borrower. The borrower is under no obligation to actually take out a loan at any particular time, but may take part of the funds at any time over a period of several years. This agreement is fairly common in situations in which a business must make payroll but does not always have the operating income to do so, especially when its operating income is seasonal or otherwise varies from month to month. It is also called open-end credit or a revolving line of credit. See also: Credit Card.

credit line

Credit line.

A credit line, or line of credit, is a revolving credit agreement that allows you to write checks or make cash withdrawals of amounts up to your credit limit.

When you use the credit -- sometimes called accessing the line -- you owe interest on the amount you borrow. But when that amount has been repaid you can borrow it again.

A home equity line of credit (HELOC) is secured by your home, but other credit lines, such as an overdraft arrangement linked to your checking account, are unsecured. In general, the interest rate on a secured credit line is less than the rate on an unsecured line.

References in periodicals archive ?
The announcement of a new credit line for Iran investments follows several other recent moves in the same direction.
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.
The higher credit line rejection at $1,000 came primarily from one group: Those between 18 and 21 years of age increased their rejection rate for credit lines from 40.
The credit lines will be provided for a period of five years.
The new credit line has been extended until December 2010 and would have a lower interest rate.
The total amount they can borrow under the bank credit line (called the availability) will probably be noted in the footnotes or management discussion.
As with liquid asset services, the use of credit lines, loans, and capital leases increased with firm size.
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.
BANKING AND CREDIT NEWS-September 16, 2011--Russia's Lenenergo to get USD115m in credit lines from Sberbank(C)2011 M2 COMMUNICATIONS http://www.