Line Of Credit Loan Agreement

A Line Of Credit Loan Agreement is a legally binding agreement between a lender and a borrower that outlines a specific credit facility which allows the borrower access to borrow funds, up to an agreed upon limit. The terms of the loan will specify how much money can be borrowed, when payments must be made as well as any applicable fees and interest rates. The line of credit can usually be drawn upon multiple times, provided there are sufficient funds available, until it gets fully repaid in full with all due amounts and associated fees. This type of loan agreement can provide an effective way for individuals or businesses to access funds on a short-term basis, often with more flexible repayment conditions than other forms of loan agreements.