Glossary
Line of Credit
A line of credit is a limit that a lender approves, from which you can draw, repay and draw again. Interest is normally charged only on the amount used. Credit cards, overdrafts, cash credit and flexi personal loans work this way. Using a large share of the limit can lower your credit score, so keep
Related terms: Overdraft, Cash Credit, Credit Utilisation.
Published 12 Nov 2026
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