Borrowing Limit

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January 1, 1 7 min read Definitions

Line of Credit Financial Arrangement Borrowing Limit Home Equity Line of Credit Business Financing Flexible Borrowing

A line of credit (LOC) is an arrangement between a financial institution and a borrower that establishes a maximum loan balance that the lender permits the borrower to access or maintain. The borrower can draw funds, repay, and redraw, provided the borrowing does not exceed the agreed credit limit.