revolving line of credit

revolving line of credit definition - finance
A consumer loan account that requires monthly payments that are less than the full amount owed and can vary. The line of credit has a limit. The lender charges a fee for agreeing to make the funds available, in addition to interest charges on the outstanding balance. A revolving line of credit often is issued in the form of a home equity loan. For corporations, a revolving line of credit is more commonly referred to as a revolver. Also may be called open-ended credit. See also revolver.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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