Revolving line of credit for an individual. What is a credit line with a debt limit. Option for individuals

The ideal solution for managing your company's working capital.

Credit line jar is an opportunity for legal entities use credit funds at any time within the established limit and terms of crediting.

Types and benefits of credit lines

We use two forms of lending when opening credit lines for legal entities:

The Bank can open both a revolving credit line with an issue limit and a debt limit, as well as a non-revolving one.

Advantages of J&T Bank credit line

• Just one application. By submitting an application for opening a credit line only once, you get the opportunity to receive credit funds for a long period of time;

• Flexible approach to the issue of credit security. You can provide any real estate, vehicles and equipment, goods in circulation, securities as collateral for a loan.

• Money is always available. You always have reserve funds in case there is not enough money in the account to pay suppliers of goods and services;

• Flexible payment options. Choose from a range of payment options to suit your needs and budget. You can pay only interest on a credit line in one month, and even more than the amount monthly principal. At any time and without penalty;

• Use your line of credit over and over again. As soon as you repay the used part of the loan amount, it immediately becomes available for reuse. You can use the renewed part of the loan at any time when you need and without having to reapply every time;

• We increase the size of the credit line. If necessary, the size of the credit line can be increased. The initial amount of the credit line may be increased based on your positive credit history in J&T Bank;

• No fees on unused loans. You do not pay interest on the part of the credit line that you have not used.

Credit line conditions

When determining the interest rate, we take into account the financial situation of the applicant, the amount and quality of the security provided by him.

Opening and securing a credit line

After considering the application and making a positive decision, the bank sets total amount loan, in accordance with the application of the borrower and his financial possibilities. After opening a credit line, the borrower gets the right to use the funds within the established limits during the entire term of the loan. At the same time, he is obliged, according to the agreement, to regularly pay for the use of the loan and / or repay the current debt.

Loan repayment procedure

The frequency, amount and terms of repayment of the principal debt under an open credit line are determined on an individual basis. The loan debt can be repaid in a lump sum at the end of the loan term or repaid according to the schedule agreed with the bank. Interest on the credit line is paid monthly or quarterly.

Requirements for borrowers

Credit lines are opened to any company and firm that has an operating and profitable business operating for at least 12 months. Credit lines are also opened for private entrepreneurs.

Wherein:

• The client has no overdue debts to tax and other government agencies;
• The client has no overdue debts to the Bank or other credit institutions;
• The company is not at the stage of bankruptcy or liquidation.

Preferential conditions for opening a credit line for small businesses

We are ready to consider the possibility of granting preferential conditions for opening long-term credit lines for small businesses in connection with the established partnership with the Moscow Small Business Lending Assistance Fund, under whose guarantee loans up to 50% can be issued .

Securing the opened credit line

We take a flexible approach to the issue of collateral for loans. The following can be accepted as collateral:

• Non-residential and residential real estate
• Motor transport
• Equipment, mechanisms, machines, technological lines
• Finished products, goods, materials in circulation
• Securities

In addition, we accept personal guarantees from business owners, top managers, and third parties. A combination of pledges and sureties is allowed.

Surely everyone is familiar with such a phrase as a credit line. But you should not equate this concept with loans, because there is a big difference between these concepts. Consider what a credit line is, what types of it exist for individuals and legal entities.

What is it: definition

So, a credit line is the right of the borrower to use the borrowed funds of the bank within a certain period of time and in the amount specified by the agreement. In other words, this is an open credit account in a bank from which the user can withdraw money in whole or as needed. The maximum amount is determined by the lender individually for each client.

Obviously, a credit line has several differences from a regular loan. Firstly, money can be withdrawn gradually, or not used at all, then interest for use will not be charged. The second is that interest is charged only after using a part of the amount, and it is on this part, and not on the entire amount.

Both a legal entity and an individual can open a credit line. The bank provides funds on the basis of an agreement. A credit line must have a maximum amount within which the borrower can use the loan.

Conditions for granting a credit limit

It should be noted that this method of disbursing cash compares favorably with a loan, for the reason that a client who regularly needs additional financing can use borrowed funds, while it is enough to conclude only one agreement with the lender. Basically, this service is more interesting for legal entities, but for them the bank chooses loan program individually.

Revolving and non-revolving credit line

V this case the bank determines the maximum limit, and the interest rate. Here solvency and analysis play a key role. financial flows client. In simple words, the lender examines the amount of earnings of the client, no matter the individual or legal entity.

The terms of the agreement on a credit line for a legal entity range from 3 months to 1 year. In exceptional cases, the loan term can be up to several years, but this is only available for large companies and approved borrowers. By the way, here the bank may require liquid property for collateral as collateral.

The interest rate for each borrower is determined individually, when applying for a short-term credit line for up to one year, from 10 to 15% per year. Here interest rate can be fixed, that is, it is a percentage that is valid throughout the entire period, and floating, it consists of a fixed part and that part that can vary depending on the level of risk of the project and other factors.

Credit line for individuals is a credit card. If you want to use this method of lending, then you just need to issue a card at any bank.

Types of credit lines

On the this moment banks offer a variety of this product. Each of them differs significantly in terms of receiving and returning cash. Consider all types of credit lines in more detail.

Non-revolving line of credit

A non-revolving credit line is a banking program, according to which the borrower can withdraw funds from the credit account in installments (tranches) within the terms established by the agreement. In simple words, the bank opens a credit line for the client, he can withdraw funds from the account for a certain time and return them to the bank in installments with interest according to the schedule, while he cannot use borrowed funds again. When the debt is paid in full, the term of the contract ends.

Types of credit lines

A credit line with an issue limit involves the issuance of cash to the borrower in tranches, that is, in installments within the period established by the agreement. This type lending is provided mainly for legal entities, it compares favorably with a loan in that the entrepreneur has the opportunity to receive money in installments, for example, to pay for supplies that come in small batches.

A non-revolving line of credit has its own characteristics, to say the least. in simple terms this is a loan divided into several parts, it is usually issued for the implementation of a business transaction of an enterprise. The contract is concluded after the provision standard package documents, these include documents of the borrower and data on his enterprise. if the loan is approved by the bank, the lender opens a loan account for the borrower with a certain amount of money. Further, the borrower can use these funds as needed, and he does not need to apply to the bank with documents every time to get a loan.

Depending on the terms of the agreement, you can receive cash from a loan account either at any convenient time in the required amount, or on the dates specified in the agreement with a certain limit.

Example

Company N entered into an agreement with banks B to open a credit line in the amount of 500 thousand rubles. He withdrew money from the loan account in three parts: the first - 250 thousand rubles, the second - 150 thousand rubles, the third - 100 thousand rubles. That is, after the limit has been completely exhausted to the borrowers, he returns the debt to the creditor with interest, and his credit line is closed.

Revolving credit line

A revolving, or otherwise, line of credit with a debt limit is banking product, which allows the borrower to use borrowed funds for a certain period in the amount established by the agreement, while as the borrower repays the debt, part of the funds, namely the payment minus interest, are returned to the credit account, which he can use again.

Revolving line of credit is familiar to individuals - it's a regular credit card. That is, the bank provides the client with a loan account from which he can spend funds. Borrowed funds are returned to the bank in the form of monthly payments, and some of them are returned to the loan account.

A credit line for legal entities, otherwise it is called revolving, is also an affordable banking product. It is mainly used by those enterprises that periodically need to attract working capital to their capital. If a non-revolving credit line allows you to use the bank's funds only for a certain period of time limit, revolving allows the reuse of funds, after full or partial repayment of the debt to the creditor.

Example

Enterprise N was opened a revolving credit line by bank B with a debt limit of 500 thousand rubles. The borrower used the first tranche and withdrew 300,000 rubles from the loan account, 200,000 rubles of which were returned. That is, 400 thousand rubles are available on his loan account. These are, of course, inaccurate values ​​and are provided for illustration purposes only.

Please note that the borrower can return the funds to the loan account in full or at a time within the terms established by the agreement.

Debt repayment procedure

Here it is impossible to say exactly how the return occurs. borrowed money because it depends solely on the terms of the contract. There are several options, for example, as with a credit card - the borrower monthly at set time contributes an amount of 5-10% of his expenses. For legal entities, the return procedure can be set differently, for example, the full amount with interest, upon expiration loan agreement. Or the amount will be debited from the entrepreneur's current account in favor of the creditor on a certain date, for example, on the last day of the month.

By the way, a line of credit may in fact be accompanied by additional costs for the borrower. For example, a bank may charge an additional fee for cash withdrawals or funds reservations when needed. large sum, it is better to reserve the money in advance, because at the time of the application the lender may not have the required amount. But for each client, the credit line is selected on an individual basis.

Similarities and differences

These products are similar to each other - the borrower can use the bank's funds for a certain period of time without an additional agreement, that is, it is enough to sign one agreement and withdraw the necessary amounts from the loan account during the term of the agreement. Any credit line is opened to the client on a commercial basis, that is, the borrower undertakes to pay interest on the loan, regardless of which line is open to him.

The advantage of a revolving credit line at Rosselkhozbank

But there is also a significant difference here, a non-revolving line of credit is fixed amount for issuance, the contract contains the deadline for lending. A revolving credit line allows the borrower to use borrowed funds again as the principal and interest are repaid.

Advantages and disadvantages

The main advantage of this lending method is that the borrower does not need to go to the bank every time, collect documents and apply for a loan, it is enough to do it once, and then use the money when they are needed. Of course, for entrepreneurs, this is a convenient source of business financing, thanks to the opening of a credit line, it always has a “financial cushion”. In addition, interest on the loan on the unused part of the amount is not charged.

Another advantage of this method of lending is that it is less expensive for the borrower. First, he pays interest only for the funds he used. Secondly, the term of the contract is quite short, so the borrower also saves on interest. In addition, the bank is always ready to offer more loyal lending conditions for reliable and trusted customers.

Now about the shortcomings, usually in the agreement with the lender, the amounts to be paid out in cash and the terms are indicated. That is, despite the fact that the amount on the loan account is quite large, the borrower can use only a limited amount of funds at a time. And this is not all the restrictions for the borrower, usually there are quite a lot of them in the contract with the bank. By the way, in most cases, even for legal entities with a high turnover of funds, the bank requires collateral for a loan, which is real estate.

Thus, this method of lending is an excellent alternative for legal entities to a conventional loan. For individuals, this offer will be irrelevant, with the exception of a credit card, of course. At the moment, many entrepreneurs use this banking product to develop their business. Only banks are ready to lend to an enterprise that has already established itself in the market, that is, there are strict requirements for the borrower.

It is a legally executed agreement between the bank and the borrower on the obligation of the bank to provide loans to the borrower within a certain period within the agreed limit.

A credit line allows a borrower to borrow funds up to a certain limit, repay all or part of the loan proceeds, and reborrow within the term of the credit line. The size of the credit line is usually set on the basis of the borrower's balance sheet data on the placement of working capital and the sources of their formation at his disposal.

The amount of the credit line is calculated according to the formula

• R— the size of the credit line;
• PZ- productive reserves;
• NP- unfinished production;
• GP - finished products;
• DZ - accounts receivable;
• THEN - goods shipped;
• KZ - accounts payable;
• SS- own funds.

The credit line is opened for enterprises and organizations with a stable financial position. In foreign banking practice, a credit line is opened for a period of three to five years, in Russian - for a period of not more than one year.

When lending to a borrower in the order of a credit line, the bank charges the client a commission for providing credit resources at the request of the borrower. A credit line opened to a borrower can be a framework, revolving or non-revolving one.

Framework credit line is the target, i.e. in this case, a loan is provided to pay for commodity deliveries under one contract within a specified period.

Revolving credit line, which is also called a revolving loan, is the most common loan. In this case, the loan is granted and repaid within the established limit and terms of lending automatically, without additional negotiations.

Non-revolving line of credit characterized by the fact that after the issuance and repayment of the loan, credit relations between the bank and the borrower are terminated.

Lending in the order of opening a credit line

In the Regulation of the Bank of Russia dated August 31, 1998 No. 54-P "On the procedure for providing (placement) of funds and their return (repayment)" under opening a credit line means the conclusion of a contract (agreement), on the basis of which the borrower acquires the right to receive and use funds within a specified period, subject to one of the following conditions:

• the total amount of funds provided to the borrower does not exceed the maximum amount (limit) specified in the loan agreement (the so-called disbursement limit);
• during the term of the loan agreement, the amount of the borrower's lump-sum debt does not exceed the amount established by him in this agreement limit (so-called debt limit).

The conditions and procedure for opening a credit line to the borrower are determined by the parties either in a special general agreement (agreement) or directly in the loan agreement itself.

The Regulation also specifically emphasizes that by opening a credit line, the Central Bank of the Russian Federation understands the conclusion of any [[Loan Agreement / Loan Agreement]], the terms of which are economic content at least somehow differ from the terms of the contract, which provides for a one-time (one-time) provision of funds to the borrower.

As part of a credit line, a loan is issued (within the agreed limit) only against reliable collateral. At the same time, the amount of collateral may not provide the entire credit line, but only the amount of debt on the borrower's loan account.

Among the most important points lending in the order of the credit line should include the definition of the credit limit. This is due to the fact that the size of the credit line is related to two factors: the client's need for borrowed funds and his ability to repay the loan in full. In this regard, the day of accounting and coordination of these two factors, two indicators are calculated:

• limit of the client's need for borrowed funds;
• limit credit risk borrower.

At the same time, the method for assessing the borrower's credit risk focuses primarily on assessing the client's creditworthiness based on the calculation financial ratios. However, given that this method does not allow to accurately determine the amount of the credit risk limit, it is advisable to supplement it with an assessment and analysis cash flows client.

Types of credit lines

The credit line may have the following options:

• simple (non-revolving) credit line (limit of disbursements);
• revolving (revolving) credit line (debt limit).

Non-revolving line of credit

Under credit line under the limit of disbursements is understood as an agreement under which the issuance of a loan is provided for in several amounts: within the total amount of the agreement (regardless of partial repayment) and within the total term of the agreement.

At the same time, the turnover of the total issuance of loans should not exceed the amount stipulated by the credit line agreement, i.e. set withdrawal limit. The limit for issuing a credit line is determined by the volume and terms of the business transaction for which the loan is requested.

To apply for a loan in the form of a line of credit, the borrower submits to the bank regular package documents that are required in any case when applying for a loan. With a positive decision on the issue of opening a credit line and agreeing on the size of the limit, a loan agreement is concluded between the bank and the client. After that, the credit department of the bank issues an order from the accounting department to open a separate loan account for the borrower for lending in the form of a credit line.

During the term of the agreement, the client-borrower can receive a loan (tranche) from the bank at any time without submitting a standard package of documents. The issuance of a loan is carried out each time at the request of the client-loan chic of the established form, which is integral part loan agreement. The application indicates the amount of the next tranche (loan) and the desired date of its provision by the bank.

The limit of disbursements under the credit line is considered to be fully used if the turnover of the total disbursement of credit for all tranches is equal to the amount stipulated in the loan agreement.

Loan repayment can be done in two ways:

• for each individual loan issuance, its specific repayment period is set, but within the total period of use of the credit line;
• the maturities of all tranches fall on the same term, i.e. at the end of the loan agreement.

Revolving credit line

Under revolving line of credit means an agreement on granting a loan to a borrower, which defines maximum size one-time debt of the client-borrower on received loans ( debt limit) and provides for the possibility of its full or partial repayment throughout the entire term of the agreement with the right to further additional credit to the client up to the established limit.

Unlike a non-revolving line of credit, where the loan turnover is limited, with a revolving line of credit, only the daily balance of the client's loan debt is limited. The maximum loan amount that the borrower can receive during the term of the agreement is not limited. Thus, the possibility of repeatedly obtaining and repaying a loan within the established debt limit makes this form of lending the most attractive for borrowers.

The execution of an agreement on opening a revolving line of credit and the issuance of a loan are carried out similarly to the procedure established for a non-revolving line of credit.

The loan is repaid by the borrower either by non-cash transfer of funds from the current account to the loan account, or by debiting funds from the borrower's account without acceptance.

Repayment of loans under a revolving line of credit agreement may be provided for on a specific date or “on demand”, but not earlier than the agreed date.

Quite often in banks there is such a product as a line of credit. It stands out from the usual lending methods and has a lot of distinctive features. For some clients, a line of credit is a lifeline, but for others it can be difficult to use. Let us consider in more detail what a credit line is, why it is needed, who uses it, how it can be used, what types are there, advantages and disadvantages of standard loans?

What is a credit line?

It represents an obligation of a credit institution to provide a client with a certain amount of a loan within a certain period of time. Unlike a regular loan, the client can receive money in installments or after a specified period of time. The terms of such issuance and all obligations of the parties are negotiated at the time of conclusion of the loan agreement. Most often, conditions are set individually for each client. A distinctive feature of this type of loan is the permanent relationship between the borrower and the lender. In practice, banks open a line of credit regular customers with a good reputation, positive credit history and high solvency.

Who uses credit lines?

Frequent customers for this product are companies that periodically have a need for credit funds. So that every time you need a loan, do not collect a package necessary documents, the company opens a credit line in servicing bank. In this case, she can take a certain amount and return it. For example, a company is engaged in trade, constantly purchasing material and selling products. The funds from the sale come a little later than you need to pay for the material. In this case, the organization takes funds from the open line, pays the suppliers, and then returns the money received from the buyer.

A private person can also open a credit line for himself, for example, for studying at a university. The bottom line is this: the training period is 5 years, and the cost of training per year is 100,000 rubles. The client draws up a credit line for 500,000 rubles, but the money is not used immediately, but in installments, for example, 50,000 rubles. every six months until the set limit is exhausted.

The most common example of a line of credit is a credit card with a limit. In this case, the client can take the amount he needs and return it at the set time. As a result, the limit is restored and it can be used again. At correct use such a line can work for a long time.

Types of credit lines.

In banks, there are several types of loan lines:

• Non-renewable. It involves the provision of a specified amount of money after a certain point in time. For example, a client wants to purchase new equipment, but has not yet decided on a supplier. To do this, he concludes an agreement on the provision of the required amount. While the search is in progress, interest on the loan is not paid (after all, the client has not yet used the money). As soon as the money is transferred to the payment account, the loan repayment period begins. Take new loan from the funds already paid will not be possible.
• Limit. In this case, the rules for providing a certain tranche (size and term) are stipulated. For example, each month the client needs the Nth amount. If in one of the periods he did not use it, then he must still pay a commission. This option is convenient for entrepreneurs who need to pay for individual consignments of goods, for example, throughout the year. Up to the established limit, the client can use the tranche. Once the limit is reached, the money must be returned.
• Renewable. It allows you to receive funds as they are needed and repay as far as possible in part or in full. For example, a company purchases material and, as goods are manufactured, sells products. When buying, the client takes part of the funds from the dedicated line, and when selling, he returns the funds, reducing the amount of debt. This line is used in credit cards. Using the allocated limit and returning it on time, avoiding delays, the period of this lending can be eternal.
• Onkolnaya. With this line, the return of a part of the loan granted restores the limit to the original one. For example, a company has issued an on-call line for 10 million rubles. Of the allocated amount, only 7 million rubles were needed. After some time, the money is returned, and the client can again take 10 million rubles.
• Contact-correct. In this case, a special account is opened for the client, from which he can take borrowed funds, and when money is received on it, they will be debited to pay off the debt. For example, a company transfers funds from an account to a supplier, and then money is received from the buyer to the same account, and the line is automatically redeemed.

Thus, each client can choose for himself the type of credit line that will be more comfortable for him.

Features of the credit line.

A credit line is a rather convenient product, however, you will have to pay for any comfort. Here is its reverse side:

• Credit is opened at an interest rate that is higher than for ordinary consumer loans (15-30% on average). Most high percent- on credit cards(reaches 50%). The rate can be fixed or floating (set for each transaction separately).
• For opening a line, the bank charges a commission (1-2% of the amount). The commission can also be charged for the fact that the client did not use the funds provided, as well as for various "operational services", for example, for maintaining an account with a renewable limit.
• Technical overdraft. Theoretically, it is impossible to get out of the established amount, however, in practice, there may be technical overdraft(overlimit), for which the bank will not miss the opportunity to take a fine.
• If unreliability is suspected, the bank can "block" the credit line. For example, a line for a mortgage is open. While the client is looking for an apartment, the bank discovers that some kind of certificate is missing, or the borrower has “spots” in his credit history. As a result, it can turn out that the client has already found a suitable option, and even made a deposit, and the bank refused to provide a loan. Businessmen in this situation may even be on the verge of ruin.
• For longer periods, liquid collateral may be required. For example, real estate, receivables, goods in warehouses, etc.
• A special repayment schedule and payment amounts provide for increased responsibility and discipline of the client.

Advantages and disadvantages of a credit line.

• Saving time. Often time plays for clients important role in transactions, so even higher costs do not affect the decision to open a line.
• Interest is charged only on borrowed funds. If the client has taken a regular loan and does not need part of the amount yet, then he must pay interest on the entire amount taken.
• Due to the line, the client can increase his working capital to cover unexpected expenses. For businesses, this provides an opportunity to reach new levels.

The disadvantages include the fact that with the slightest error in the fulfillment of obligations by the client, the bank can close the credit line at the most inopportune moment. The cost of servicing such a loan may be higher due to commissions. Only disciplined clients with a positive credit history and reputation can provide a line.

Our compatriots, as well as in foreign countries, have long had the opportunity to choose a variety of credit products. At the same time, each person always has the opportunity to choose just such a line of credit, which most clearly satisfies a number of his basic requirements.

V Lately increasing popularity among various segments of the population, began to use this type of loan, as the opening of a credit line. Unlike the usual, classic lending (), the design of a credit line provides for the possibility of using borrowed funds exactly when the borrower needs it, while interest is paid only on the amount that has actually already been used (spent).

Thus, legally speaking, a credit line is a written contractual agreement between a credit institution and a borrower, according to which, the lender provides the borrower within a specified time with a loan in the amount of a pre-agreed amount, that is, a limit. At the same time, the borrower has the opportunity to receive bank loans under the credit line repeatedly, and the bank, in turn, draws up a line of credit for its client with an established cash limit more than which the borrower will not be able to spend.
When drawing up a credit line agreement, two main conditions are always taken into account:

- the limit for the issuance of funds is determined, that is, this is the total amount of debt that credit organization can provide its client for the entire term of the credit line agreement;

- and a clear debt limit is set, that is, the borrower receives the maximum possible loan, with the timely repayment of which, he has the opportunity to use credit funds again.

Main advantages bank line of credit is as follows:

– in order to conclude an agreement with the bank, it is enough to provide only one package required documents. Therefore, there is no need to constantly collect piles of papers in order to receive the required amount;

- the borrower has a great opportunity repeated use of funds received when opening a line within a predetermined limit;

- the borrower decides for himself what amount of the loan would be best for him to take, of course, within the framework of the concluded agreement;

- Possibility of taking out a loan foreign currency;

– the borrower can use the provided loan in any amount, within the limits maximum limit credit line, established by the bank;

- the loan can be repaid not only for the entire period at once, but also on the date specified in the agreement;

- interest payments are made only with the sum of money, which has already been used and spent.

However, credit lines have a few shortcomings not to mention:

- in the event that the borrower did not have time to spend the entire amount of borrowed funds on time and in the amount of the established line limit, the credit institution may impose some sanctions on him, for example, a penalty fee;

- it is possible to issue an extension of an already open line only when the borrower has fully repaid his debt to the bank and if there is no negative balance on his account.

Main types of credit lines: revolving and non-revolving credit line

Most modern financial institutions provide clients with a good credit history with two types of opening credit lines: revolving and non-revolving loans. However, each of these options has its own significant differences.
So, renewable a line of credit is considered one of the most favorite types of loans among a huge number of borrowers. This is due to the fact that the opening of a renewable line implies more interesting opportunities, namely: you can repeatedly use borrowed funds within the limits stipulated by the agreement.

Moreover, the terms for which you can get a revolving line of credit can reach three years, at least - from one year. The borrower can use the loan amount at his own discretion, that is, not spend it all at once in one go, but do it periodically as needed.
Interest that will have to be paid on a revolving line of credit will accrue only on the amount of money that has been spent by the borrower. But do not forget about the amount of the principal debt, which will also have to be paid every month.

And what is most remarkable is that the amount of the main debt that the borrower has deposited into the account can be used again. That is, for example, if the borrower in the current month pays his principal debt in the amount of a thousand rubles, he will receive a unique opportunity to use the same thousand again at will. And so on until the revolving line of credit is open.
Another thing, non-renewable a line of credit, which, in fact, is very similar to consumer loans we are used to. The bottom line is that the agreement with the bank stipulates in advance all the terms of use credit limit along the line: general terms payments by the borrower of the tranche (payments) and its size. At the same time, it does not matter at all the fact how quickly it will be repaid. bank debt. Therefore, a non-revolving line of credit will be most beneficial to those borrowers who periodically need relatively small cash or when using directed lending.

At the same time, the borrower must always be sure that the credit institution, as necessary, will provide the borrower with a new tranche. As soon as the borrower uses all possible tranches, and the limit is completely exhausted, he will have to start repaying the debt to the bank account.

In any case, before deciding to apply for a particular credit line, you need to calculate how profitable it will be and whether it would be easier to use a different loan product.