Line of Credit (LOC)
Key Features of a Line of Credit
A Line of Credit (LOC) is a highly flexible borrowing option designed for individuals and businesses that need access to funds on an ongoing or as-needed basis. Unlike a traditional loan where you receive a lump sum upfront, a line of credit gives you a pre-approved credit limit that you can dip into multiple times—making it ideal for covering fluctuating expenses, bridging temporary cash flow gaps, or managing unforeseen costs. As you repay what you borrow, your available limit is replenished, giving you continuous access without the need to reapply. Whether secured with collateral or unsecured, a line of credit is a smart financial tool that adapts to your evolving needs while offering control over how and when you use the funds.
Revolving Access to Funds: Draw money as needed up to your credit limit, and reuse it as you repay—no need for reapplication.
Interest on What You Use: You're only charged interest on the amount borrowed, not the full credit limit, helping you save on unused funds.
Flexible Repayment Options: Repay in full or make minimum payments depending on your financial situation and goals.
Withdraw funds instantly—often via online banking, linked accounts, or a credit card—when unexpected expenses arise.
