Question
In which of the following facility the borrower can take
money out as needed until the limit is reached, and as money is repaid, it can be borrowed again?Solution
- The Line of Credit is not a grant but a ‘soft loan’ provided on concessional interest rates to developing countries, which has to be repaid by the borrowing government.Â
- It is a credit facility extended by a bank or any other financial institution to a government, business or an individual customer, that enables the customer to draw the maximum loan amount.
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