What does the online loan credit line mean?
In fact, the credit line refers to the maximum amount given to the borrower by the lending institution in a certain period of time, during which the borrower can use the funds at any time.
Characteristics of credit line:
1. The credit line can be recycled, so the formulation of enterprise financial plan becomes clearer and more organized, and there is no need to arrange funds for routine business.
2. Meet the basic financing needs of enterprises. Credit line A single credit line is set according to various credit business types such as loans, letters of credit and letters of guarantee, which basically covers the main financing needs of customers. With the consent of the bank, the quota of a single product can be adjusted and cross-exchanged, which improves the utilization rate of the quota.
3. Simplify enterprise credit approval procedures. After obtaining the credit line, the customer decides the use mode and performance time of the credit line by himself according to the agreement, without reporting it to the credit bank for approval one by one, thus avoiding the time of single credit approval.
The difference between credit line and available line
In the loan product with revolving credit line, the available credit line is the difference between the credit line and the actual loan line, that is, "available credit line = credit line-actual loan line".
For example:
If the credit line granted by the bank to borrower A is 200,000 yuan, and the line can be recycled, and A applies for withdrawing 50,000 yuan, then the available line of A is "20-5 = 6,543.8+0.5 million yuan". If Party A has repaid the loan of 20,000 yuan, then his available amount is "15+2 =170,000 yuan".
In loan products where the line cannot be applied for multiple times, the available line is equal to the credit line or zero.
For example:
If the credit line granted by the bank to Borrower A is 200,000 yuan, and the credit line cannot be applied for multiple times, Party A will not apply for cash withdrawal, and the available credit line is 200,000 yuan. If an applicant asks for a loan, the amount can be large or small, then the available amount becomes zero.
Therefore, the available line can only be greater than or equal to the credit line, and cannot exceed the credit line. Only when the credit line granted by financial institutions increases will the maximum available credit line increase.
The above is the meaning of online loan credit line, and I hope it will help everyone.