Line of credit is a flexible loan from a bank or financial institution. It is a defined amount of money that can be accessed as and when needed and then repaid at a specified time. Line of credit are approved by the bank and it charges variable interest on the borrowed amount.
Risk revenue is lower in lines of credit as compared to credit card loans. Lines of credit is the answer to personal or unsecured loans one might take from time to time as this makes a specified amount of money available if, and when the borrower needs it.