Credit line

A credit line is a type of loan that is characterized by the availability of a specific amount of money at any time. The size of the credit line indicates the maximum amount of money you can borrow. Usually, such loans are repaid in monthly installments and the loan interest is charged only on the loan amount used for the credit line. If a credit line has been applied for and the loan has not been used, no payments are due. For bank credit cards, this type of loan is called overdraft, which allows you to spend a larger amount of money on the card up to a certain limit, as is available in your account. See for a summary