The line of credit is a kind of loan agreement between a bank or any financial institution and a customer. A customer can be an individual person, a business entity, non-financial institute, Government etc.
The line of credit defines the total amount of money approved by a bank to a customer. It’s a flexible loan as the interest rate is very low and the borrower can repay the loan amount for a longer duration of time. It would help a business to manage daily basis expenses smoothly.