Line of credit

A line of credit is a source of credit allotted to an individual, business, or government, by a financial institution, for a specific amount of money, and it can take such forms as overdraft protection, a personal loan, a credit card, or other revolving credit. The borrower is required to pay interest on the money borrowed, and may pay an unused line of credit fee and such lines of credit as a credit card may have an annual fee.