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Finance Dictionary and Glossary of Investment Terms
Line of Credit
Definition 1.
An arrangement between a financial institution (usually a bank) and a customer establishing a maximum loan balance that the bank will permit the borrower to maintain.
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Definition 2.
An informal loan arrangement between a bank and a customer allowing the customer to borrow up to a prespecified amount.
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Definition 3.
An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period. also called credit line.
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